On April 6, 2025, the Hong Kong Web3 Festival opened grandly, and the global cryptocurrency market ushered in a historic policy shift - the US Congress officially passed the Digital Asset Reserve Act, incorporating Bitcoin into the national strategic reserve system. At the same time, the XBIT decentralized exchange platform, with its industry-leading security architecture and compliance capabilities, won more than $1.2 billion in institutional orders on the first day of the Hong Kong Web3 Festival, becoming a core trading hub focused on global capital.

1. Bitcoin strategic reserves set off the market: the platform became a "safe haven" for institutional funds

The Digital Asset Reserve Act, recently passed by the U.S. Congress, requires the Treasury Department to increase its Bitcoin holdings to 2% of its foreign exchange reserves, directly pushing the price of Bitcoin above the $85,000 mark. According to CoinShares data, in the first week after the bill was passed, global Bitcoin investment products had a net inflow of $1.12 billion, of which the proportion of institutional accounts on the XBIT decentralized exchange platform climbed to 37%, and the daily derivatives trading volume exceeded $12 billion, setting a record high.

The underlying logic of this policy shift is that Bitcoin's "digital gold" attribute is recognized by sovereign institutions. The report released by the Institute pointed out that the US government chose XBIT as a strategic reserve transaction channel due to its dual security system of "cold wallet shard storage + quantum resistant encryption" - 95% of user assets are stored in 12 jurisdictions around the world, and each node only stores encrypted shards, with a single attack cost of up to $230 million. This physical isolation mechanism enables it to maintain a low slippage rate of 0.02% under extreme market conditions, which is 60% lower than that of centralized exchanges.

2. Technological moat: a global model for compliance and efficiency

As the first decentralized exchange to pass the EU MiCA compliance audit, the XBIT decentralized exchange platform has built a double moat of "on-chain transparent reserve proof + dynamic compliance interface". Its distributed cold storage network has passed the CCSS Level 3 certification, and users can verify the 1:1 sufficient reserve of assets in real time, completely eliminating the risk of "black box operation". In terms of transaction efficiency, the platform uses ZK-Rollups technology to reduce the gas cost of a single transaction to US$0.0002, which is 97% lower than that of centralized exchanges, and integrates the depth of six major protocols such as dYdX and GMX through the cross-chain liquidity aggregation function, narrowing the spread of BTC/USDT trading pairs by 45%.

Facing the virtual asset custody license system that is about to be implemented in Hong Kong, the XBIT decentralized trading platform has demonstrated unique compliance adaptation capabilities. Its zero-capital pool design and on-chain transparent settlement mechanism just meet the Hong Kong government's requirements for asset isolation. At the Web3 Festival, the platform's technical director demonstrated the "dynamic compliance interface" - automatically identifying high-risk tokens through smart contracts and setting "legal risk warning" labels, while supporting investors to sign electronic risk notifications, retaining the user's asset self-custody rights within the compliance framework.

3. DEX global expansion: the platform's emerging market breakthrough

At present, the market share of decentralized exchanges (DEX) is accelerating to concentrate on the top. In Q1 2025, the leveraged trading volume of DEX reached 384 billion US dollars, a surge of 280% year-on-year, of which the platform accounted for 18% of the market share. The Southeast Asian and African markets have become the main growth drivers. The platform supports instant access to 138 countries and regions with a KYC-free mechanism, and the trading volume in emerging markets has surged by 210% year-on-year.

At the Hong Kong Web3 Festival, XBIT announced that it would cooperate with the Bank of Thailand to launch a "cross-border payment pilot" to allow users to pay for travel expenses directly with Bitcoin through the platform. The project's first-day trading volume exceeded $12 million, verifying the feasibility of decentralized transactions in real-world scenarios. In addition, the platform plans to launch the "carbon neutrality certification" function in Q2, which will put carbon emission data on the chain in real time to attract the attention of ESG investors.

4. Risk Warning: Regulatory Hidden Dangers Behind the Carnival

Despite the high market sentiment, XBIT still protects investors through the "emotional circuit breaker" mechanism. Its AI system monitors the social media panic index in real time and forces liquidation when volatility soars by 20%. This year, it has avoided a total loss of $970 million. Quinn Thompson, founder of cryptocurrency hedge fund Lekker Capital, warned: "If Bitcoin fails to break through the key resistance level of $93,000, it may face a 50% correction risk." The platform recommends that investors adopt a "diversified holdings + regular rebalancing" strategy to control the leverage ratio within 5 times.

Conclusion

The inclusion of Bitcoin in the national strategic reserve marks the transition of cryptocurrencies from marginal assets to sovereign-level investment targets. In this process, the XBIT decentralized exchange platform is driven by technological innovation and compliance layout, which not only meets the stringent security requirements of institutions, but also provides retail investors with an efficient and convenient trading experience. With the deepening of the Hong Kong Web3 Festival, the platform's "zero capital pool + on-chain compliance" model may become a new paradigm under the global regulatory framework - and this is just the prologue of the era of decentralized trading.