Digital Asset Market Evolution: Institutional Shift and Regulatory Clarity

Sabina Liu, Managing Director EU at KuCoin, shares her insights on the current state of the digital asset market in an exclusive interview. As the market evolves, it is becoming less momentum-driven and more rooted in long-term market development. This shift is characterized by stronger institutional participation, continued retail engagement, and increasing convergence between traditional finance (TradFi) and decentralized finance (DeFi).

Liu emphasizes that areas like tokenization, particularly real-world assets (RWAs), are progressing from experimentation into adoption. This growth is supported by greater regulatory clarity, participation from TradFi players, and the development of on-chain infrastructure. The market's focus is turning toward distribution and a more compliant, sustainable framework for long-term growth.

When discussing macro liquidity, Liu notes that it remains an important backdrop for digital asset markets but is no longer the sole driver of growth. She highlights the importance of structural factors such as regulatory clarity, product maturity, and market infrastructure in determining the durability of growth.