The global financial landscape is undergoing a seismic shift—one that challenges the foundations of traditional systems and redefines how trust, value, and access are structured. At the heart of this transformation lies blockchain technology, cryptocurrency, and the emerging Web3 ecosystem. In a powerful keynote address at Hong Kong’s flagship Web3 Festival, OKX President Hong positioned crypto not just as a technological innovation, but as a catalyst for a more trustless, transparent, and equitable financial future.
A Failing System in Need of a Rewrite
Recent global events—from the collapse of Silicon Valley Bank to rising inflation and eroding confidence in Big Tech—have exposed deep vulnerabilities in the current financial infrastructure. As Hong emphasized, “Recent events suggest the current system is no longer fit for purpose. The seams are showing, and a rewrite is needed.”
This sentiment resonates with growing public skepticism toward centralized institutions that have long acted as gatekeepers of financial services. With 1.7 billion unbanked adults worldwide, the limitations of traditional finance are not abstract—they are deeply personal and systemic.
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Traditional finance relies on intermediaries to verify transactions, safeguard assets, and maintain trust. But when these institutions falter—due to mismanagement, lack of transparency, or policy manipulation—the consequences ripple across economies. In contrast, blockchain offers a trustless system, where verification is built into the protocol rather than outsourced to third parties.
What Makes Money, Money?
At the core of Hong’s argument is a fundamental question: What gives money its value? She outlined three essential qualities:
- Store of value – must be reliable over time
- Unit of account – must be fungible and consistent
- Medium of exchange – must be verifiable, convenient, and scalable
Fiat currencies, she argued, have been so heavily manipulated through inflationary policies and quantitative easing that they increasingly fail to meet these criteria. Cryptocurrencies like Bitcoin, however, are designed with scarcity, decentralization, and cryptographic security—qualities that align closely with what true money should be.
“Bitcoin does [possess these qualities], and it and other cryptocurrencies are on the rise,” Hong stated, pointing to growing institutional adoption and macroeconomic trends favoring digital assets.
Web3: Be Your Own Bank, Your Own Platform
One of the most transformative promises of Web3 is self-sovereignty—the ability for individuals to control their own identity, data, and finances without relying on centralized entities.
“Banking can be defined as safety of savings, access to payments, and yield on wealth,” Hong explained. “You don’t need a bank in the Web3 world to access these services. No longer do you need to rely on trusting a bank. With blockchain technology, you can verify your own assets.”
This shift isn’t theoretical. Through tools like the OKX Wallet, users can interact directly with decentralized applications (dApps), participate in DeFi protocols, earn yield, and manage multi-chain assets—all while retaining full custody of their keys.
The introduction of OKX’s Multi-Party Computation (MPC) wallet, supporting over 37 blockchains, marks a significant leap toward making self-custody both secure and user-friendly. By eliminating single points of failure and simplifying key management, MPC technology brings the vision of “be your own bank” within reach for mainstream users.
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Transparency as a Foundation for Trust
In an industry often criticized for opacity, OKX has taken deliberate steps to set new standards for accountability. In March, the company published its fifth consecutive monthly Proof of Reserves, confirming US$8.9 billion in holdings across BTC, ETH, and USDT.
This level of transparency isn’t just good practice—it’s essential for restoring confidence in digital asset platforms. Unlike traditional banking systems where reserve ratios are hidden or audited annually (if at all), blockchain enables real-time verification. Users can independently verify that exchanges hold sufficient assets to cover liabilities—a cornerstone of a trustless economy.
Regulatory Compliance: Building Legitimacy in a New Era
Innovation without regulation risks instability; regulation without innovation stifles progress. OKX is navigating this balance by actively engaging with regulators worldwide.
Hong highlighted the company’s recent move to apply for a Hong Kong Virtual Asset Service Provider (VASP) license under the new regulatory framework. Additionally, OKX is pursuing Type 1 (dealing in securities) and Type 7 (automated trading systems) licenses under the Securities and Futures Ordinance.
These actions signal a commitment to operating within legal frameworks while advocating for sensible, forward-looking policies that protect users without hampering technological advancement.
FAQ: Understanding the Shift to Web3
Q: What does “trustless” mean in blockchain?
A: “Trustless” doesn’t mean distrust—it means you don’t need to trust a third party. Transactions are verified by consensus mechanisms and recorded immutably on the blockchain.
Q: Can I really be my own bank with crypto?
A: Yes. With a self-custody wallet like OKX Wallet, you control your private keys, manage your assets, and interact directly with financial protocols—without intermediaries.
Q: Is Hong Kong becoming a crypto hub?
A: Yes. With clear licensing rules, government support, and major events like the Web3 Festival, Hong Kong is positioning itself as a leading jurisdiction for blockchain innovation in Asia.
Q: How does Proof of Reserves increase security?
A: It proves that an exchange holds enough assets to back user deposits. When done monthly and verified by auditors, it reduces the risk of insolvency and fraud.
Q: What is MPC wallet technology?
A: Multi-Party Computation splits private keys across multiple parties or devices, so no single point holds full access—enhancing security without sacrificing usability.
Q: Why is Bitcoin considered sound money?
A: Due to its fixed supply (21 million), decentralized issuance, and resistance to censorship or devaluation—Bitcoin functions as digital scarcity in an age of monetary expansion.
The Road Ahead: Infrastructure for an Open Financial Future
OKX isn’t just building products—it’s helping lay the infrastructure for a new financial paradigm. From secure wallets to transparent reserves and regulatory alignment, the company is focused on creating accessible entry points into Web3 for users around the world.
As Hong concluded, the future belongs to systems that are open, verifiable, and inclusive. The tools exist today. The momentum is growing. And the movement toward a decentralized, equitable financial system is no longer speculative—it’s inevitable.
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Core Keywords: crypto, blockchain, Web3, trustless system, decentralized finance, Bitcoin, self-custody, Proof of Reserves