Sei’s Regulatory Strategy in Japan
Sei, a layer-1 blockchain, is making significant moves in Asia by focusing on regulatory compliance first. According to Lee Zhu, the network’s director of growth for APAC, Japan’s strict licensing process became a cornerstone of their expansion strategy. Last year, Sei managed to secure the necessary approvals that allowed listings on major Japanese exchanges like Binance Japan and OKX Japan.
Japan’s exchange licensing is known to be one of the toughest globally. Getting through that process early on gives Sei a notable advantage. It’s not often you see a layer-1 blockchain manage this so quickly. The team seems to understand that in regulated markets, compliance isn’t just a checkbox—it’s the foundation for everything else.
Building Institutional Bridges
The institutional angle is interesting. Sei’s approach relies heavily on Circle’s native USDC deployment on their network and tokenization efforts led by Apollo through Securitize. Zhu explained that these integrations actually reduce friction for exchanges. They create what he called a “gateway” for structured products and derivatives.
When you think about it, this makes sense. Institutions need familiar tools and reliable infrastructure. Having USDC natively deployed and established players like Apollo involved provides that comfort level. It’s not just about having fast technology—it’s about having the right connections and partnerships.
Technical Positioning
Sei’s technical approach differs from competitors like Solana and Sui. They’re combining high throughput with EVM compatibility. Zhu mentioned this eliminates switching costs for the 90% of developers already working with Solidity. That’s a practical consideration I hadn’t fully appreciated before.
High throughput benchmarks are one thing, but if developers have to learn entirely new programming languages, that creates friction. By maintaining EVM compatibility, Sei might be playing a smarter long game. It’s easier to attract developers when they don’t have to abandon their existing skills.
Market Performance and Growth Areas
In Korea, Sei ranks among the top three by trading volume despite having lower market capitalization and total value locked compared to larger competitors. That’s noteworthy. It suggests there’s genuine interest and activity happening, even if the overall numbers aren’t as massive as some other chains.
Zhu also pointed to growth in GameFi and SocialFi sectors. On some days, Sei has actually outpaced Solana in daily active users. That’s surprising given Solana’s established position. It makes me wonder if there are specific applications or communities driving this activity that we’re not fully seeing yet.
Looking Ahead
The next year appears to be about balancing two tracks. On one side, there’s the institutional onboarding through real-world asset tokenization. On the other, building a broader developer base in talent-rich hubs like Vietnam and Indonesia.
Zhu described high throughput as a “filter” for institutions. Without the capacity, you’re not even in the door. But having capacity alone isn’t enough. You need the regulatory compliance, the partnerships, and the developer ecosystem.
When asked about market downturns, Zhu noted the team was built during a bear market and operates with what he called a “prudent, impact-focused” mindset. His comment about survival in crypto standing a bigger chance for success feels particularly relevant given current market conditions.
This approach—compliance first, then institutions—might not be the flashiest strategy, but it could be more sustainable in the long run. The Asian markets, with their clearer regulatory frameworks, provide a testing ground for this method. If it works there, it could inform Sei’s approach elsewhere.
