Quick Takeaways
- Standard Chartered warns that Bitcoin’s strength underpins DeFi’s long-term success.
- Geoff Kendrick calls Bitcoin the “apex asset” of decentralized finance.
- The bank outlines a three-step BTC accumulation plan below $100,000.
Standard Chartered Says Bitcoin Must Hold the Line for DeFi to Beat TradFi
Standard Chartered has warned that Bitcoin’s resilience will determine whether decentralized finance (DeFi) can truly rival traditional finance (TradFi).
In a new market place banker’s bill, Geoff Kendrick, the bank’s Head of FX and Digital Assets Research, depicts Bitcoin as the “apex asset” of the DeFi ecosystem. He argued that if Bitcoin were to collapse, the entire foundation of DeFi could crumble with it.
Bitcoin Is the Backbone of DeFi
Speaking ahead of the Singapore FinTech Festival (SFF), Kendrick said Bitcoin’s role has evolved beyond a speculative investment. It now represents the structural backbone of decentralized finance.
“It is fair to say these days I spend most of my time talking about DeFi taking over TradFi,” Kendrick wrote. “But for that to be possible, Bitcoin needs to not collapse.”
His remarks underscore a growing recognition among major banks that DeFi’s future depends on Bitcoin’s stability and credibility as a reserve-grade digital asset.
Standard Chartered Shifts Focus to Structural Resilience
Standard Chartered has long been among the few global banks to publish in-depth research on digital assets. Kendrick’s recent commentary marks a shift from price speculation to systemic analysis of Bitcoin’s role in DeFi’s evolution.
“DeFi can’t replace traditional finance if its cornerstone asset is volatile or unreliable,” noted one market analyst in response to Kendrick’s statement.
The bank’s latest analysis suggests that Bitcoin’s long-term structural integrity, just its price action, will determine DeFi’s ability to scale sustainably.
Three-Step Bitcoin Accumulation Strategy
Alongside his market outlook, Kendrick outlined a three-step Bitcoin accumulation plan, calling sub-$100,000 levels a potentially historic entry point. His strategy includes:
- Buying 25% of a target BTC allocation at current prices.
- Adding another 25% once Bitcoin closes above $103,000.
- Allocating the final 50% when the Bitcoin–gold ratio exceeds 30.
He noted this could be “the last major dip” before Bitcoin begins its next sustained bull phase.
DeFi’s Future Hinges on Bitcoin’s Stability
Kendrick’s analysis reflects a broader institutional view: DeFi’s success depends on Bitcoin’s ability to stay strong under pressure.
With institutional adoption rising and volatility returning to crypto markets, Bitcoin’s stability will be the litmus test for whether decentralized finance can finally stand shoulder to shoulder with TradFi.
As Kendrick put it, “If Bitcoin remains strong, DeFi will flourish. If it fails, TradFi wins.”