Bitcoin surges and Fed policies increase market volatility
On March 20, 2025, Bitcoin price broke through the $85,000 mark, setting a recent high, with a single-day increase of more than 3%. Ethereum also rose by 7%, driving the crypto market to rise across the board. This rise is closely related to the risk aversion demand caused by the plunge in the Turkish lira. Data shows that the BTC/TRY trading volume on the Binance platform has surged to a one-year peak, and investors are accelerating their shift to stablecoin assets such as USDT.
Source: Coin World
At the same time, the Federal Reserve announced its interest rate decision early this morning, announcing that it would maintain the benchmark interest rate unchanged, but lowered its GDP growth forecast for 2025 and raised its inflation forecast. Fed Chairman Powell said that “policy adjustments need to be made based on data”, and the market’s uncertainty about expectations for rate cuts has exacerbated short-term volatility.
In this context, XBIT decentralized exchange has become the core choice for investors to hedge risks with its multiple security mechanisms – it uses cold wallets to store 95% of user assets offline, smart contracts are regularly audited by third parties such as CertiK, the vulnerability rate is kept at 0%, and the transaction records are traceable on the entire chain through blockchain browsers to ensure the authenticity and integrity of each transaction.
compliance process of USDC exchanges is accelerating, and SBI and OKX are the focus
The ecological layout of stablecoin USDC continues to deepen. SBI VC Trade, an exchange under the Japanese financial giant SBI Group, officially launched the USDC service on March 12, becoming the first institution in Japan to obtain the registration of “electronic payment methods and other transaction practitioners”. Although the current circulation scope is limited to internal testing of the group, this move marks a key step in the landing of USDC in Asian compliant exchanges. In addition, OKX has recently added dozens of USD trading pairs, covering tokens such as MDT, PERP, and AXS, further expanding the application scenarios of USDC in spot trading and providing more fiat currency deposit and withdrawal options for global users.
The USDC Economic Status report released by Circle shows that the total historical transaction volume of USDC has exceeded 20 trillion US dollars, and the monthly transaction volume in November reached 1 trillion US dollars, a year-on-year increase of 50%. Its compliance advantages and cross-border payment capabilities continue to attract institutional users. For example, Standard Chartered Bank Zodia Markets has minted 4 billion US dollars of USDC for foreign exchange settlement, solving the T+1 settlement problem in the Asia-Pacific region.
Source: Coin World
XBIT decentralized exchange: a safe and efficient hedge option
Under the drastic fluctuations of Bitcoin, XBIT decentralized exchange has become the core platform for investors’ asset management with its non-custodial architecture and on-chain verifiable mechanism. XBIT uses zero-knowledge proof technology (ZK-Snarks) to ensure transaction privacy and uses multi-signature wallets to reduce asset custody risks. Recently, its cross-chain bridging function supports instant exchange of USDC with BTC and ETH, further improving liquidity efficiency.
It is worth noting that the decentralized trading protocol Hibachi announced the completion of a $5 million seed round of financing on the same day, with participation from top institutions such as Dragonfly. Its verifiable security design based on zero knowledge echoes the technical path of XBIT, highlighting the industry’s emphasis on transparent infrastructure.
USDC liquidity game in DEX and CEX: core differences and market dynamics
Against the background of Bitcoin’s sharp fluctuations and the Fed’s policy adjustments, USDC, as a compliant stable currency, has a significant difference in the liquidity role of DEX in decentralized exchanges and CEX centralized exchanges. The following is a comparative analysis from four dimensions: asset control, transaction efficiency, security and regulatory adaptability:
1.Asset control and transparency
DEX: Users directly manage assets through self-hosted wallets, private keys are always controlled by individuals, transactions are completed on the smart contract chain, and all records are publicly available, eliminating the risk of black box operations. For example, the XBIT platform provides low slippage transactions through USDC, and user assets flow on the chain without relying on third-party custody.
CEX: Users need to deposit USDC into the exchange’s custodial wallet, the private key is controlled by the platform, and the transaction is executed off-chain, which has low transparency. Recently, a leading CEX has caused users to turn to DEX due to the leakage of API keys, highlighting the custody risk.
2.Trading efficiency and liquidity depth
CEX: With centralized market makers and a large user base, CEX provides high liquidity and instant trading experience, and USDC has extremely low slippage in mainstream currency pairs. For example, after the MEXC exchange launched the DEX+ function, the transaction volume exceeded 110,000 USDT in 24 hours, integrating the advantages of CEX and DEX to improve liquidity.
DEX: Limited by blockchain performance, transaction latency is high, but the lack of liquidity is partially compensated by automated market makers (AMM) and cross-chain bridging technology (such as XBIT supports instant exchange of USDC and BTC/ETH). MegaVault, recently launched by dYdX, provides automated market making support for USDC by aggregating liquidity pools, enhancing the depth of the DEX market.
3.Security and censorship resistance
DEX: Based on a non-custodial architecture, user assets are not affected by single node failures or hacker attacks. XBIT uses zero-knowledge proofs (ZK-Snarks) and multi-signature wallets to further reduce risks.
CEX: Historical security incidents have occurred frequently (such as the “Mentougou incident”), and centralized databases are easy targets for attack. Although mainstream CEXs have strengthened risk control, user assets still rely on the reputation of the platform.
4.Regulatory adaptability and innovation space
CEX: Subject to strict KYC and anti-money laundering regulations, USDC has more compliance advantages in cross-border payments and fiat currency deposits and withdrawals. For example, Circle cooperated with the Asia-Pacific Exchange to expand USDC applications, and Standard Chartered Bank used USDC to solve the T+1 settlement problem.
DEX: The feature of not requiring KYC attracts censorship resistance, especially in events such as the plunge of the Turkish lira, users quickly exchange USDC for risk hedging through DEX. Pakistan is accelerating the legalization of cryptocurrencies, further promoting the adoption of DEX in South Asia.
Source: Coin World
Global Regulatory Trends: Pakistan is working hard to legalize cryptocurrencies
The Pakistani government announced on March 20 that it would accelerate the construction of a legal framework for cryptocurrencies, aiming to become a blockchain financial center in South Asia. Bilal bin Saqib, CEO of the country’s Crypto Commission, pointed out that Pakistan has 20 million crypto users, and regulatory clarity will attract international capital inflows. This move competes with policies in Dubai, Singapore and other places, or reshapes the global crypto market landscape.
In addition, Mark Uyeda, acting chairman of the U.S. SEC, recently instructed to review crypto custody rules or relax regulatory restrictions on compliant stablecoins (such as USDC) to clear obstacles for institutional investors to enter the market.
Industry Innovation: Solana Futures ETF Debuts, USDC Cross-Chain Application Deepens
Volatility Shares launched the first Solana Futures ETF (SOLZ) in the United States today, with a management fee as low as 0.95%, providing investors with leveraged exposure. This move complements the circulation of USDC on the Solana chain – USDC Treasury recently minted $250 million USDC on Solana, further consolidating its liquidity position as a multi-chain stablecoin.
In addition, tokenization company Ethena Labs announced that it would migrate the $6 billion DeFi ecosystem to the Ethereum compatible chain Converge, and promote the application of USDC in institutional asset tokenization by cooperating with Securitize to provide compliant custody services. xbit.com official website
Conclusion: Compliant stablecoins and decentralized technologies shape the future
The market upheaval in March 2025 revealed the safe-haven properties of Bitcoin and the core role of USDC in compliant exchanges. DEX platforms such as XBIT are gradually building a safe and efficient trading ecosystem through technological innovation and USDC’s liquidity support. With the improvement of the global regulatory framework and the influx of institutional capital, USDC may become the core bridge connecting traditional finance and the crypto world
Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.