Stablecoin trading volume (adjusted and unadjusted)
In addition to smart contract risks, scalability and performance limitations are also crucial. If an institution suddenly conducts millions of daily transactions on Ethereum, fee costs could skyrocket and throughput could be hampered. Scalability risks can be mitigated by choosing an appropriate network (such as a Layer 2, a high-speed layer, or a sharded architecture), using batching to aggregate transactions whenever possible, and adopting asynchronous processing for smaller transactions that don't require instant finality. Interoperability and cross-chain bridge risks are also important, as institutions often need to transfer assets across chains—for example, storing tokenized assets on one chain and liquidity on another. Cross-chain bridges are notorious points of failure, with billions of dollars lost in past hacks. Consequently, institutions minimize their use of third-party cross-chain bridges. Some institutions choose a burning and minting solution operated by a trusted party. Circle's cross-chain transfer protocol eliminates the need to hold assets in a cross-chain bridge by burning them on the source chain and minting them on the target chain, thus reducing custody risk. When third-party cross-chain bridging is required, institutions prefer bridges with strong security features, such as multi-signature mechanisms, insurance coverage where possible, and audits. Some institutions also require cross-chain bridge providers to conduct risk assessments, and there are frameworks that rate the security of cross-chain bridges. Blockchain has evolved from the proof-of-concept stage to a production-ready stage for fund flows, collateralization, and capital allocation. Regulatory clarity in the US, EU, and Hong Kong has reduced policy risks, while rising stablecoin trading volumes and tokenized fund assets under management demonstrate real demand.The short-term winners will be banks and asset managers that combine public chain coverage with permissioned controls, measurable KPIs, and strict custody. The current enforcement focus is on supplier selection, privacy design, and risk control, rather than whether to participate.Technical Risks
Conclusion
Nansen's recent blockchain analytics report uncovers a substantial surge in weekly NFT sales volume. In the first week of November, sales soared to an impressive 68,342 ETH, equivalent to over $129 million.
JixuMoody's Analytics will employ machine learning and a range of indicators to assemble and assess large-cap stablecoins, aiming to detect potential depegging events.
JixuDeutsche Telekom's subsidiary, Deutsche Telekom MMS, has entered into a partnership with Aleph Zero, the privacy-enhancing layer 1 blockchain. The telecom giant has joined Aleph Zero's network of validators by establishing a validator node on both the mainnet and testnet.
JasperAt ApeFest 2023 in Hong Kong, BMW introduced its latest creation, the i5 M60 affectionately named the 'Ape Car.' Attendees were astonished as this sporty electric vehicle became a canvas for ape caricatures, symbolizing the NFT frenzy.
JixuBored Ape collectors found themselves facing an unexpected challenge after attending the ApeFest party in Hong Kong.
JasperAva Labs, the driving force behind the Avalanche Blockchain, has made a strategic decision to reduce its workforce by 12%, allowing for the repositioning of resources to fuel the growth of both the company and the wider Avalanche ecosystem.
AaronThe U.S. Security and Exchange Commission (SEC) is encountering difficulties in recruiting professionals with expertise in cryptocurrency, with a significant hindrance being its own policies, as revealed in a recent agency report.
JasperEveryone saw Gensler refusing to answer if ETH is a security. And now we know why.
AlexThe London Stock Exchange Group (LSEG) recently published a job listing for the position of director of digital assets. This new role seeks an individual with a strong interest in digital assets, cryptocurrencies, and distributed ledger technology.
JasperThe global surge in reported crypto scams has sparked inquiries about the possible link between the growth of the cryptocurrency market and the escalation of fraudulent incidents.
Hui Xin