On October 22, the integration message of 1inch and Flowdesk, like a stone thrown into the cryptocurrency market, created ripples in the convergence of traditional finance and decentralized finance (DeFi). The EURCV and USDCV stablecoins issued by Société Générale carry a compliant 'gold edge' — backed by licensed institutions and pegged to fiat currency, now circulating through 1inch's decentralized network, equivalent to equipping traditional financial assets with a DeFi 'engine.'
The addition of Flowdesk is even more intriguing: as a liquidity provider registered with the French financial regulator, it understands the compliance logic of traditional finance while being able to adapt to the technical framework of DeFi, serving as a 'translator' between the two. This combination acts like a double insurance for the liquidity of stablecoins — combining the efficiency of decentralized trading with the backing of centralized regulation, perhaps becoming the standard model for institutional funds entering DeFi in the future.
However, this hybrid model of "compliance + decentralization" also hides challenges: how to balance the regulatory red lines of traditional finance with the open characteristics of DeFi? Can the transparency of on-chain order processing be compatible with the privacy needs of institutional clients? But in any case, this exploratory step has already broken the dimensional wall between the two types of markets; perhaps it won't be long before we see more traditional assets "wearing regulatory safety helmets" venture into the crypto world along this path.
