Sei’s Asia Playbook: Compliance to Conquest

Sei, a foundational blockchain network, is strategically focusing on Asia for expansion, leveraging Japan’s regulatory framework and forging alliances with key international organizations, according to Lee Zhu, the network’s director of growth for the Asia-Pacific region.

In a conversation with Decrypt leading up to the Token2049 event in Singapore, Zhu revealed that Sei successfully obtained the required authorizations in Japan the previous year. This paved the way for listings on prominent Japanese exchanges like Binance Japan and OKX Japan.

Japan’s licensing procedure for exchanges is known for its strict standards, making Sei one of the earliest Layer-1 blockchains to gain approval.

“Clearer regulatory landscapes in these areas empower our team to make informed choices and allocate resources efficiently,” Zhu stated. “By maintaining compliance and adapting to evolving regulatory conditions, Sei intends to foster growth and secure lasting success within the APAC area.”

Sei’s appeal to institutions is strengthened by Circle’s deployment of native USDC on the network and Apollo’s tokenization efforts carried out through Securitize. Zhu highlighted that these integrations streamline operations for exchanges and establish a “pathway” for sophisticated financial products and derivatives.

Unlike competitors such as Solana and Sui, Sei provides both exceptional throughput and EVM compatibility. Zhu emphasized that this dual approach eliminates conversion expenses for the vast majority (90%) of developers who are already proficient in Solidity coding.

In South Korea, Sei’s trading volume places it among the top three, despite having a smaller market capitalization and Total Value Locked (TVL) compared to its larger rivals, according to Zhu. He also acknowledged emerging growth within the GameFi and SocialFi sectors, where Sei has, at times, exceeded Solana in terms of daily active users.

Zhu described the strategy for the upcoming year as a balanced approach, focusing on bringing institutions on board through Real-World Asset (RWA) tokenization while simultaneously expanding the developer base in talent-rich locations such as Vietnam and Indonesia. He explained that while high throughput acts as a “filter” for institutions, a lack of capacity prevents entry altogether.

When asked about Sei’s resilience in the face of market downturns, Zhu mentioned that the team’s foundation was built during a bear market, fostering a “careful and impact-driven” operational style.

“In the crypto space, simply surviving enhances your odds of success,” he concluded.