{"id":11973,"date":"2024-11-12T16:21:00","date_gmt":"2024-11-12T08:21:00","guid":{"rendered":"https:\/\/group.qa1.hashkeydev.com\/?p=11973"},"modified":"2026-06-24T16:32:31","modified_gmt":"2026-06-24T08:32:31","slug":"keynote-speech-by-hashkey-group-chairman-and-ceo-dr-xiao-feng-at-smartcon-on-chain-and-in-chain","status":"publish","type":"post","link":"https:\/\/group.hashkey.com\/zh\/keynote-speech-by-hashkey-group-chairman-and-ceo-dr-xiao-feng-at-smartcon-on-chain-and-in-chain\/","title":{"rendered":"Keynote speech by HashKey Group Chairman and CEO Dr. Xiao Feng at Smartcon: “On-Chain” and “In-Chain”"},"content":{"rendered":"
\n\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Hong Kong, Oct.31, 2024 –<\/strong> Dr. Xiao Feng, Chairman and CEO of HashKey Group<\/strong>, delivered a keynote speech titled \u201cOn-Chain\u201d and \u201cIn-Chain\u201d at SmartCon 2024, which hosted by Chainlink. The following is the full text of the speech, transcribed from the live recording, with some minor edits that do not affect the original meaning.<\/span><\/p><\/div>

Hello everyone, it is a pleasure to be here at Smartcon 2024 hosted by Chainlink. Chainlink is a decentralized oracle network connecting blockchain with off-chain data. \u201cOn-chain\u201d is a core business for Chainlink. So today I want to share with you is the topic of the \u201cOn-Chain\u201d and \u201cIn-Chain\u201d.<\/span><\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\t

Traditional Financial Market vs. Crypto Financial Market<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\t
\n
\n

Looking back over the past decade of blockchain development, we see that we are building a new financial market system: the Crypto Financial Market.<\/span><\/p>\n\n<\/div>\n

\n

Unlike the traditional financial market system, which depends on centralized ledgers and bank accounts record all economic activity with fiat as the unit of account. Since the birth of Bitcoin in 2009, blockchain has adopted distributed ledger, which is based on digital currency accounting, and the corresponding unit of account takes the form of cryptocurrency.<\/span><\/p>\n\n<\/div>\n

\n

These represent two different financial systems. However, we are seeing the trend of interconnectedness between them.<\/span><\/p>\n\n<\/div>\n<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\t

2025: Interconnectivity<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\t

These two markets can connect through five pathways:<\/span><\/p><\/div>

  1. Stablecoins: Currently, stablecoin transaction volume is forecast to reach $6 trillion in 2024. Tokenizing fiat currencies (PayFi) serves as the largest bridge between fiat and cryptocurrencies.<\/span><\/li>
  2. ETFs: Off-chain securitization of crypto assets, which turns digital native assets on the chain into ETFs. Currently, there are close to $70 billion in total positions in the U.S. spot Bitcoin ETF chain, which makes it easy for traditional investors to allocate cryptocurrency assets without having to manage their private keys.<\/li>
  3. Real-World Asset (RWA) Tokenization: Recently RWA (real asset tokens) is a highly discussed new asset class. RWA is that traditional assets are digitized and recorded on-chain through oracles like Chainlink. However, oracles are just the bridge; the ultimate goal is to tokenize assets.<\/li>
  4. Security Token Offerings (STOs): Although this has been discussed for five to six years, we\u2019ve yet to see significant real-world applications. However, in the next six months, many Web3 businesses will begin raising funds and going public via tokens instead of following traditional IPO pathways.<\/li><\/ol><\/div>

    \u00a0<\/p>

    In fact, the above four types of methods need to be carried out through compliant, licensed and regulated financial institutions. So licensed financial institutions are obviously one of the channels to help open the two financial markets.<\/span><\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

    \n\t\t\t\t\t\t\t\t\t

    \u201cOn-Chain\u201d and \u201cIn-Chain\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

    \n\t\t\t\t\t\t\t\t\t

    Assets exist in two states:<\/span><\/p><\/div>

    1. On-Chain: All real world assets and digital twins are recorded on Distributed Ledger Technology (DLT). The key difference between DLT and other ledger systems is that DLT functions as a transparent, global public ledger. When data, information and assets are registered on DLT, global liquidity becomes possible.<\/span><\/li>
    2. In-Chain: Digital-native assets such as Bitcoin that originate and exist exclusively on blockchain. These assets can be securitized from on-chain to off-chain, offering traditional investors a straightforward way to benefit from the crypto market without needing to manage their private keys.<\/li><\/ol><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
      \n\t\t\t\t\t\t\t\t\t

      Three Methods of \u201cOn-Chain\u201d Transition<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

      \n\t\t\t\t\t\t\t\t\t
      1. Data On-Chain: Through oracles like Chainlink, Web2 data can be brought onto the blockchain and recorded as assets in a global public ledger.<\/span><\/li>
      2. DePIN (Decentralized Physical Infrastructure Network): This has been a very hot topic recently. DePIN aims to bring hardware devices onto blockchain, but “on-chain” is not the ultimate goal. The goal is for devices to be “chained,” enabling real-world asset (RWA) tokenization of hardware devices once they are on-chain.<\/li>
      3. Asset On-Chain (DeFi): Tokenizing real-world financial assets on decentralized finance (DeFi) platforms.<\/li><\/ol><\/div>

        \u00a0<\/p>

        Whatever use what methods to \u201con-chain\u201d. The ultimate goal of \u201con-chain\u201d is tokenization, which enables assets getting liquidity around the world. No matter where an asset is based, if registered on a DLT, it can be traded by global investors.<\/span><\/p><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

        \n\t\t\t\t\t
        \n\t\t\t\t
        \n\t\t\t\t\t\t\t\t\t

        DLT\u2019s Two-layer Value<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

        \n\t\t\t\t\t\t\t\t\t

        DLT can be applied on two levels. First, we can use DLT to achieve marginal improvements in well-established business models in the real world.<\/span><\/p><\/div>

        For example, the Bank for International Settlements (BIS) advocates using DLT to reduce costs and increase efficiency in bank settlements and clearing. However, this approach does not fundamentally change the existing business model for settlements and clearing.<\/span><\/p><\/div>

        Additionally, If using traditional methods of cross-border payments, intermediary costs can range from 3% to 6%. Using DLT, however, these fees could drop from 3% to as low as 0.3%. This potential for cost reduction has prompted traditional banks to explore ways to leverage DLT to improve internal processes, including deposits, loans, and remittances. For instance, the Hong Kong Monetary Authority is encouraging banks to tokenize deposits, implementing deposit tokenization.<\/span><\/p><\/div>

        However, only by viewing DLT as an integrated mechanism and a system-wide transformation can new business models truly emerge. For example, Bitcoin was introduced as an entirely new business model on DLT, which in turn created a new asset class: the token.<\/span><\/p><\/div>

        The value of tokens on DLT comes from the computer system and serves as a form of usage permission. In the AI era, following the birth of ChatGPT, tokens have also become units of data and pricing metrics. User fees are based on the number of tokens inputted or outputted.<\/span><\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

        \n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
        \n\t\t\t\t\t\t\t\t\t

        Token: Crypto Assets<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

        \n\t\t\t\t\t\t\t\t\t

        In DLT, the scope of the Token has a greater evolution, it becomes a class of financial assets. Because DLT and blockchain, a new asset class, namely crypto assets, has emerged\u2014one as one of the newest asset categories.<\/span><\/p><\/div>

        From an asset perspective, tokens are rooted in cryptography and rely on blockchain as a distributed ledger, alongside self-managed digital wallets. HashKey exchanges help users deal with Crypto (virtual currency) trading investments. The biggest difference between HashKey Exchange and a traditional stock exchange is that users have full self-custody of assets. They can withdraw virtual currencies purchased on HashKey Exchange and trade them on other virtual asset exchanges, and vice versa. This flexibility highlights a key distinction between Web2 and Web3.<\/span><\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

        \n\t\t\t\t\t\t\t\t\t

        DLT that meets compliance needs<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

        \n\t\t\t\t\t\t\t\t\t

        When the era of interconnected markets arrives, and traditional finance becomes integrated with crypto finance. New demands will emerge for distributed ledger technology, specifically in terms of compliance, KYC, AML, and CFT\u2014Know Your Customer, Anti-Money Laundering, and Counter-Terrorism Financing. Because any financial activity, whether in traditional or crypto finance, involves substantial externalities when it comes to deposits, remittances, loans, and investments. Externalities require oversight by independent third parties, so licensing, compliance, and regulation will become increasingly important after connectivity.<\/span><\/p><\/div>

        In the last decade, we emphasized decentralization, self-organization and distribution. Because from the perspective of infrastructure, it must be decentralized. However, when it comes to the application layer, it will face specific scenarios, specific judicial areas, specific users, and specific needs, so there may be negative externalities, so third-party supervision is required.<\/span><\/p><\/div>

        HashKey plans to launch HashKey Chain, a layer 2 protocol based on Ethereum, in December. We welcome collaboration, and what sets HashKey Chain apart is that we will provide varying levels of KYC, AML, and CFT requirements for different financial services and products, allowing everyone to safely engage in blockchain applications, especially those involving cryptocurrencies and tokens, under a compliant and regulated framework.<\/span><\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

        \n\t\t\t\t\t\t\t\t\t

        \u201cCustomers want the hole in the wall, not the drill in their hand.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

        \n\t\t\t\t\t\t\t\t\t

        To conclude, I\u2019d like to end this speech with a quote from the CEO of Germany\u2019s Bosch: \u201cCustomers want the hole in the wall, not the drill in hand.\u201d<\/span><\/p><\/div>

        DLT and blockchain are tools, like drill. Users don`t focus on Blockchain technology. Users just want the new applications and assets that are generated by blockchain, which can become an essential part of their investment portfolios.<\/span><\/p><\/div>

        Thank you, everyone, for your attention today.<\/span><\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

        \n\t\t\t\t\t
        \n\t\t\t\t
        \n\t\t\t\t\t\t\t\t\t

        \u95dc\u65bc HashKey \u96c6\u5718<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

        \n\t\t\t\t\t\t\t\t\t

        HashKey Group is a leading digital asset financial services group in Asia with global operations in regions such as Hong Kong, Singapore, Japan, and Bermuda. Since 2018, HashKey Group has built a global Web3 ecosystem within a high-compliance regulatory framework, including HashKey Exchange<\/a>, a licensed virtual asset exchange regulated by the Hong Kong SFC;\u00a0HashKey Global<\/a>, the global flagship digital asset exchange;\u00a0HashKey Capital<\/a>, a global asset manager investing exclusively in blockchain technology and digital assets;\u00a0HashKey OTC<\/a>, the compliant over-the-counter (OTC) trading arm of HashKey Group,\u00a0HashKey Cloud<\/a>, a leading provider of global Web3 infrastructure; and\u00a0HashKey Tokenisation<\/a>, a tokenisation services provider.<\/span><\/p><\/div>

        HashKey Group also possesses a rich on-chain ecosystem, having developed the Ethereum Layer 2 “Ecosystem Chain”, HashKey Chain, and plans to launch the HashKey platform token HSK. HashKey Group is committed to driving the mass application of blockchain technology, aiming to provide trustworthy and accessible digital asset services to one billion global users.<\/span><\/p><\/div>

        For media enquiries and more information, please contact: pr@hashkey.com<\/a><\/span><\/p><\/div>

        \u514d\u8cac\u8072\u660e<\/u><\/a><\/span><\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

        Hong Kong, Oct.31, 2024 – Dr. Xiao Feng, Chairman and CEO of HashKey Group, delivered a keynote speech titled \u201cOn-Chain\u201d and \u201cIn-Chain\u201d at SmartCon 2024, which hosted by Chainlink. The following is the full text of the speech, transcribed from the live recording, with some minor edits that do not affect the original meaning. Hello […]<\/p>\n","protected":false},"author":5,"featured_media":11974,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-11973","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/group.hashkey.com\/zh\/wp-json\/wp\/v2\/posts\/11973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/group.hashkey.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/group.hashkey.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/group.hashkey.com\/zh\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/group.hashkey.com\/zh\/wp-json\/wp\/v2\/comments?post=11973"}],"version-history":[{"count":4,"href":"https:\/\/group.hashkey.com\/zh\/wp-json\/wp\/v2\/posts\/11973\/revisions"}],"predecessor-version":[{"id":11979,"href":"https:\/\/group.hashkey.com\/zh\/wp-json\/wp\/v2\/posts\/11973\/revisions\/11979"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/group.hashkey.com\/zh\/wp-json\/wp\/v2\/media\/11974"}],"wp:attachment":[{"href":"https:\/\/group.hashkey.com\/zh\/wp-json\/wp\/v2\/media?parent=11973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/group.hashkey.com\/zh\/wp-json\/wp\/v2\/categories?post=11973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/group.hashkey.com\/zh\/wp-json\/wp\/v2\/tags?post=11973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}