The Future of Blockchain in the Global Economy

Title: OKX CEO Star Xu: Half of the Global Economy to Function on Blockchain

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Summary:
During Abu Dhabi Finance Week, OKX CEO Star Xu predicted that within the next few decades, around 50% of global economic activities will be conducted using blockchain technology. He emphasized that this shift is driven by a generation accustomed to digital services and artificial intelligence. Xu presented blockchain as a robust solution for financial transactions, highlighting its potential for efficiency and transparency.

Key Takeaways:

Star Xu forecasts that blockchain will power 50% of global economic activities in the future.
He likened this transition to previous technological advancements, moving toward a “financial internet.”
The infrastructure is evolving to meet institutional demands, prioritizing security, efficiency, and transparency.
Bitcoin is referred to as "digital gold," while stablecoins facilitate near real-time cross-border transactions.
Xu envisions a future where self-custody wallets and portable digital identities are the norm.

During Abu Dhabi Finance Week, Star Xu, the CEO of OKX, stated that in the coming decades, nearly half of all global economic activities could operate on blockchain technology. He attributed this shift to a growing demand from a generation that has been raised in a digital world filled with mobile devices and artificial intelligence.

Xu described blockchains as “programmable financial rails” that enable value to be transferred quickly, globally, and continuously. He characterized the emerging trend as an infrastructure change rather than merely a trading opportunity. This includes the growth of stablecoin settlements, the rise of multi-trillion-dollar assets on blockchains, and increasing numbers of digital wallets. Additionally, he pointed to ongoing regulatory developments in significant markets that are creating opportunities for compliant blockchain activities.

Understanding the Demand for On-Chain Finance

Xu draws parallels between the current moment and previous technological cycles, such as the internet, mobile tech, and cloud computing. He believes the next phase will be a “financial internet” where financial storage, transfer, and settlement are managed by software and can be easily audited.

He emphasized that the current blockchain infrastructure can adequately address the needs of institutions, highlighting seamless account integrations, user-friendly experiences without gas fees, and throughput capabilities that can handle millions of transactions per second.

Security goals in blockchain technology aim to mirror the safeguards associated with traditional bank accounts. In addition, features such as on-chain identity, analytics, and audit functions are designed to increase transparency. Xu contends that over time, open and efficient systems will prevail, and the digital generation is already pushing the financial sector towards an always-available model.

The Role of Bitcoin, Stablecoins, and Tokenization

Xu referred to Bitcoin as “digital gold” for younger investors, noting that more institutions are beginning to incorporate it into their balance sheets. He also highlighted stablecoins as valuable tools for near real-time international transactions, often linked to the U.S. dollar and other regional currencies.

He placed a strong emphasis on tokenization, which he believes will transform market structures. This will allow assets such as funds and government bonds to be continuously traded on-chain, offering transparent pricing and compliance monitoring.

Looking ahead, Xu envisions a financial system where users will manage their assets through self-custody wallets, identities will be transferable, and both issuance and settlement will occur on a unified base layer.

Xu concluded, “More open, transparent, and efficient systems will ultimately prevail,” affirming that the internet generation is already laying the groundwork for this future.