DeFi Coins Backed by TradFi Assets Could Outpace Native Crypto Projects, Says Alliance DAO Co-Founder QwQiao

COINOTAG News reports that on November 27, Alliance DAO co-founder QwQiao shared a thesis on social media regarding the DeFi landscape. He argues that projects building on traditional finance assets—via collateralized lending or asset-backed trading—could access a larger addressable market than platforms that rely solely on native crypto assets, potentially expanding investor participation.

QwQiao notes that such DeFi models may help ease the reflexive bull/bear cycle, since fundamentals would be less tethered to crypto price moves. He also highlights regulatory headwinds as a former constraint, but warns that evolving oversight could unlock scalable, compliant solutions bridging TradFi and digital markets. The biggest obstacle in the past has actually been regulatory issues, but this seems to be changing.