Crypto's Big Move: How Traditional Finance is Catching Up
Cryptocurrencies have come a long way since they first hit the scene. Now, even traditional finance companies are taking notice. The U. S. government passed the GENIUS Act last year, showing just how mainstream digital assets have become.
The Rise of Crypto Wallets
Ben Zhou, CEO of Bybit, says that if traditional firms don't embrace crypto, they'll be left behind. He points out that crypto wallets are growing in popularity, with adoption rates of 20-30% each year.
Stablecoins: The New Payment Method
Stablecoins, a type of cryptocurrency, are becoming more regulated and are now used for things like sending money across borders and making payments. In 2025, over $18 trillion in transactions were settled using stablecoins, which is more than what was processed by Visa and Mastercard combined.
Faster and Cheaper Transactions
Zhou argues that crypto transactions are faster and cheaper than traditional bank transfers. He says that relying on the old SWIFT system is just too slow.
Big Banks and Payment Providers Jump Onboard
Big investment banks like Goldman Sachs are starting to integrate tokenized assets into their operations. Payment providers like Visa and Mastercard are also partnering with crypto exchanges to issue payment cards that allow users to spend their crypto holdings in real-time.
The Future of Traditional Financial Instruments
Zhou believes that crypto will be the main driving force behind traditional financial instruments like stocks and credit-default swaps within the next decade. He says that the accessibility, connectivity, and unification of this technology are what make it so appealing.
From Forex Trader to Crypto Pioneer
Before entering the crypto industry, Zhou worked as a Forex trader at XM, a financial brokerage. He recalls that back then, crypto was still seen as a niche market, with many investors viewing it as a scam.
The Journey of Bybit
Zhou started Bybit in Shanghai, recruiting a team of software engineers from major Chinese tech firms like Tencent and Alibaba. After China banned crypto mining and trading in 2021, Zhou relocated his team to Singapore, and then to Dubai, drawn by the UAE's crypto-friendly regulations.
Global Operations
Today, Bybit operates globally in over 150 countries, though it doesn't offer services in several others, including the U. S., Canada, China, and Singapore.
The Largest Crypto Theft in History
Despite the optimism surrounding cryptocurrency, challenges in ensuring safe transactions remain. On Feb. 21, 2025, North Korean hackers stole $1.4 billion worth of Ethereum from Bybit in the largest crypto theft in history. The hack spooked Bybit's customers, leading to massive withdrawals.
The Recovery Bounty Program
Bybit launched an industry-first "Recovery Bounty Program", offering 10% of the stolen funds as a reward to anyone who could help trace and recover the stolen currency. While Bybit wasn't able to recover the stolen funds, it was able to secure financing to restore its reserves.
Enhanced Security Measures
Zhou says that since the hack, Bybit has tightened its security measures, including using hardware security modules (HSMs). These are tamper-resistant physical devices that securely generate, store, and manage cryptographic keys. He explains that unless there's a physical break-in, no one will be able to touch the tokens.
The Challenge of Fast-Paced Transactions
However, Zhou admits that the fast pace of cryptocurrency transactions makes it hard to stop scams and thefts from happening. He explains that while tracing stolen funds is possible in crypto, everything moves so fast that by the time you get to it, the money is already gone.
The Future of Crypto Safety
Despite these challenges, Zhou remains upbeat about the future of safety in the crypto industry. He believes that crypto infrastructure and technology are only increasing in abundance, and many more cybersecurity companies are joining the space.
Regulatory Frameworks and Mainstream Adoption
More countries have laid out regulatory frameworks for crypto companies like Bybit. For example, the EU rolled out the Markets in Crypto-Assets (MiCA) license in late 2024, allowing certified crypto providers to operate legally across the whole continent.
Focus on Emerging Markets
Zhou believes that enhanced regulation will pave the way for mainstream crypto adoption. He's focused on European markets this year, as well as developing markets like Argentina, Brazil, Nigeria, Turkey, and India, where demand for crypto is booming due to weak local currencies.
