Ethereum News Today: OKX Builds Bridge Between TradFi and DeFi with X Layer's $100M Vision

OKX CEO Star Xu has unveiled a three-phase strategic roadmap for X Layer, a Ethereum Layer 2 rollup designed to serve as the core infrastructure for the exchange's wallet and trading platforms. The initiative, supported by a $100 million Vision Fund, aims to expand decentralized finance (DeFi) adoption and enhance cross-chain interoperability. The first phase, currently active, focuses on integrating stablecoins such as Tether (USDT) and USDG, with the latter already operational on X Layer. This phase is intended to provide users with low-cost, high-speed access to stablecoin transactions and yield-generating opportunities, including projected annualized returns of 4%-5% for stablecoin holders in OKX Wallet OKX CEO Star Xu Unveils Three-Phase Strategy for X Layer, …^[1]Star discusses the blueprint for X Layer construction: advancing in ...^[3].

The second phase targets collaboration with major DeFi protocols, including Aave, Uniswap, Balancer, and Chainlink, to establish X Layer as a scalable hub for lending, trading, and oracle services. This integration aligns with OKX's broader goal of creating an open blockchain network, leveraging Ethereum's security while optimizing transaction throughput to 5,000 transactions per second (TPS) via Polygon's Pessimistic Proof (PP) technology OKX CEO Star Xu Unveils Three-Phase Strategy for X Layer, …^[1]X Layer overview | X Layer Documentation | OKX^[2]. The third phase will deploy incentive programs funded by the Vision Fund, which will reward developers and projects contributing to the X Layer ecosystem. Xu emphasized that the fund reflects OKX's commitment to long-term technological development rather than short-term profit, with multiple rounds of support planned for startups and protocols OKX CEO Star Xu Unveils Three-Phase Strategy for X Layer, …^[1]Star discusses the blueprint for X Layer construction: advancing in ...^[3].

X Layer's technical architecture, built on Polygon's CDK framework, features the OKB token as its native gas token, replacing the legacy OKTChain. The platform's PP upgrade, completed in August 2025, enables cryptographic finality for cross-chain transactions while maintaining low fees and fast execution. This design allows users to interact with decentralized applications (dApps) at a fraction of Ethereum's cost, with full compatibility with the Ethereum Virtual Machine (EVM). OKX has also integrated X Layer with its wallet, decentralized exchange (DEX), and payment solutions, enabling seamless cross-chain swaps and DeFi participation X Layer overview | X Layer Documentation | OKX^[2]OKX X Layer Is Live — And Ave.ai Is First to Bring Full DEX Support ...^[4].

OKX's strategic pivot to X Layer positions it as a key player in the Layer 2 competition, rivaling platforms like Binance and Coinbase. The exchange, which ranks as the world's second-largest by trading volume, aims to solidify its dominance in Web3 and DeFi by fostering partnerships with leading protocols. Xu highlighted that the Vision Fund's $100 million allocation will drive ecosystem growth, with an initial focus on incentivizing developers to build on X Layer. The exchange has also introduced token-burning initiatives to reduce OKB supply, aligning with its deflationary tokenomics strategy OKX Launches $100 Million X Layer Fund, Introduces DEX Fees^[6].

Regulatory challenges remain a critical factor for OKX's global operations. The exchange suspended Hong Kong-based centralized trading services in May 2024 due to stringent licensing requirements under the city's new Virtual Asset Service Provider (VASP) framework. Despite this, OKX continues to offer Web3 services in the region, including self-custody wallets. Xu reiterated that the company prioritizes compliance with evolving regulations while maintaining its focus on infrastructure innovation. The exchange's headquarters have shifted to Malta and China Hong Kong, reflecting its adaptive approach to regulatory landscapes .

The X Layer strategy underscores OKX's vision for a modular blockchain ecosystem capable of supporting DeFi, real-world asset (RWA) tokenization, and AI-driven applications. Xu stated, "The value of X Layer lies in long-term construction and a prosperous ecosystem, not short-term OKB speculation," emphasizing the platform's role in bridging traditional finance (TradFi) and decentralized systems OKX CEO Reaffirms Long-Term Focus on X Layer^[5]. With the first phase already underway and DeFi integrations progressing, OKX aims to solidify its position as a foundational infrastructure provider in the next generation of blockchain innovation.