Kelvin Ko: The Reason for On-Chain Entry is Regulatory Change

It has been assessed that traditional financial institutions' entry into the on-chain market has become possible due to the easing of regulatory uncertainty. Security risks such as hacking and money laundering are still pointed out as obstacles to the influx of institutional funds. Kelvin Ko, co-founder of Spartan Group, and Kim Sung-ho, co-founder of Hashed, discussed at the 'Block Festa 2026' held in Yeouido, Seoul, on the 1st, stating that regulatory changes in the U.S. have facilitated institutional participation. Ko explained that while the technology has existed for 5 to 6 years, institutions found it difficult to handle tokens directly until regulations were established. He mentioned that the money market fund (MMF) tokenization project is targeting large crypto-holding institutions rather than traditional financial institutions. Partner Kim pointed out that while the stablecoin market has grown to $300 billion, asset allocation in DeFi is only 3%, emphasizing that security risks are the biggest hurdle for institutional capital. The two assessed that the pace of regulation in Asia is faster than in the U.S. and mentioned the possibility of regulations being reversed after the U.S. midterm elections. Ko raised doubts about whether the U.S. will remain a crypto hub, stating that policy changes could lead to a shift in interest towards Asia.

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