Standard Chartered´s head of FX and digital assets research asserts that Bitcoin’s structural strength is now foundational to the future of decentralized finance. Without it, the momentum of DeFi competing with traditional finance could falter.
In a recent note, Standard Chartered positions Bitcoin not merely as a speculative investment but as the critical base layer for the entire decentralized finance (DeFi) ecosystem. The argument is stark: if Bitcoin collapses, the narrative that DeFi can supplant or meaningfully rival traditional financial institutions (TradFi) could be severely undermined. This framing elevates Bitcoin from a high-volatility token to a systemic concern in digital finance.
The bank outlines that Bitcoin functions as the “apex asset” of DeFi — the one that underpinning collateral, network confidence and liquidity flows. When DeFi platforms design lending, staking or synthetic-asset products, many implicitly assume a stable or rising Bitcoin. Without that, the risk of cascading declines and shattered confidence grows. Standard Chartered emphasises that current Bitcoin levels — and recent dips below US$100,000 — may represent a final entry window for longer-term institutional allocation, hinting at a multi-step accumulation strategy.
Bitcoin as the “apex asset”—why its stability matters for DeFi’s future
Technically and strategically, the bank recommends a three-part buying plan: purchase a first tranche at current levels, add more if Bitcoin closes above a defined threshold, and acquire the remainder once the Bitcoin-to-gold ratio exceeds a target (indicating Bitcoin’s growing reserve-asset role). This speaks to the dual role of Bitcoin: as a market asset and a foundation for next-gen finance. The report further projects that tokenised real-world assets within DeFi could reach US$2 trillion by 2028, a growth that depends heavily on the structural reliability of primary crypto rails.
However, the report also points out key risks. Bitcoin’s volatility, regulatory uncertainty, and macroeconomic pressures (rate policy, liquidity) could derail not only Bitcoin’s price but also the broader DeFi build-out. If Bitcoin fails to maintain support, DeFi products may face redemption stress, leverage unwindings and a credibility setback. For market participants, the message is clear: monitor Bitcoin’s support levels, network metrics and institutional flows — they may now stand for more than just crypto-performance, but for the viability of DeFi as a rival system.
In conclusion: Standard Chartered’s view reframes Bitcoin as not just a token, but as the structural linchpin in the shift from TradFi to DeFi — making its near-term stability vital for the next phase of finance.
