Sei’s Strategic Expansion in Asia
Sei, a Layer-1 blockchain, is strategically leveraging Japan’s regulatory landscape and establishing collaborations with international organizations to enhance its footprint in Asia. Lee Zhu, the network’s growth director for the Asia-Pacific (APAC) region, shared insights with Decrypt prior to an intensive week at the Token2049 event in Singapore.
Regulatory Approvals and Market Entry
The blockchain secured vital regulatory approvals in Japan last year, facilitating its listings on prominent exchanges such as Binance Japan and OKX Japan. Japan is known for its rigorous exchange licensing requirements, making Sei’s advance into the market a significant achievement for a Layer-1 blockchain.
Attracting Institutional Investment
Sei’s approach to attracting institutional investment is bolstered by the integration of USDC, facilitated by Circle, on its platform, as well as ongoing tokenization initiatives with Apollo through Securitize. Zhu emphasized that these collaborations are designed to streamline operations for exchanges while providing a new pathway for structured financial products and derivatives.
Competitive Edge and Developer Support
In comparison to its competitors like Solana and Sui, Sei distinguishes itself by merging high throughput capabilities with Ethereum Virtual Machine (EVM) compatibility. This integration is particularly beneficial for the majority of developers coding in Solidity, as it minimizes barriers to entry.
Regulatory Clarity and Growth Vision
Zhu noted that “clearer regulations in these markets” allow the Sei team to make well-informed decisions regarding resource allocation and future strategies.
By adhering to compliance and adapting swiftly to regulatory shifts, Sei envisions fostering sustainable growth in the APAC sector.
Market Position and Future Strategies
In South Korea, Zhu highlighted Sei’s position among the top three platforms based on trading volume, despite its market cap and total value locked (TVL) being lesser than some larger rivals. Furthermore, Sei is witnessing notable advancements in sectors like GameFi and SocialFi, occasionally exceeding Solana in daily active user metrics.
Looking Ahead
Looking ahead, Zhu articulated a dual strategy for the next year: cultivating institutional partnerships through real-world asset (RWA) tokenization while expanding its developer ecosystem across talent-rich regions such as Vietnam and Indonesia. He identified high throughput as a key factor for institutional interest, noting that without adequate capacity, a blockchain cannot gain a foothold.
Navigating Market Challenges
When questioned about navigating potential market declines, Zhu remarked on the origin of the Sei team during a bear market, highlighting their cautious, impact-driven approach.
He concluded with a compelling perspective:
“In crypto, survival increases your chances of achieving long-term success.”
