BounceBit conducted an experiment: generating a verifiable credential on-chain for U.S. Treasury bonds in a securities account using ZK proofs, and then directly borrowing USDC on Aave with this credential. The whole process feels like magic—traditional financial assets instantly transformed into hard currency in the DeFi world.

@BounceBit #BounceBitPrime $BB

Issuing 'digital passports' for traditional assets
BounceBit's ZK solution is truly ingenious:

  • The brokerage's position generates proof without exposing account details

  • The rights to Treasury bond income are transformed into verifiable on-chain credentials

  • All proofs are lightweight to the point of almost ignoring Gas fees

  • Cross-chain use requires no trust in any intermediary

Last week there was a case: an institution borrowed 6.5 million USDC on Compound using a ZK proof of 10 million dollars in government bonds, with an interest rate 2.1% lower than traditional channels.

Breaking the 'Berlin Wall' of the financial world
The dilemma of traditional finance:

  • Bank assets are trapped in the traditional system

  • The DeFi world lacks quality collateral

  • Cross-market arbitrage opportunities disappear in an instant

  • Capital circulation efficiency is as low as a snail

Now BounceBit's breakthrough method:

  • Stocks, bonds, and funds can all generate ZK proofs

  • Traditional assets instantly become DeFi collateral

  • Yield rights can be cross-chain combined

  • All operations are completely compliant and transparent

The most successful example: a hedge fund utilized a ZK proof of government bond holdings to arbitrage simultaneously across three DeFi protocols, increasing annualized returns to 17%.

The most exciting news this morning: a retired teacher used a ZK proof of 200,000 dollars in government bonds to achieve dual returns of traditional wealth management + DeFi income on BounceBit, increasing monthly income by 2,300 dollars.

In today's world where traditional finance and the crypto world are still separated, BounceBit uses ZK technology to build a seamless connection bridge. Participating now is like investing in gateway technology in the early days of the internet – it seems like just a connecting tool, but in fact, it is a key node that connects two worlds.