Sei Network Launches Monaco Protocol to Bridge Wall Street and DeFi Liquidity

Sei Network has launched the Monaco Protocol, a decentralized finance (DeFi) infrastructure designed to integrate traditional Wall Street liquidity with blockchain trading. The protocol, incubated within the Sei Labs ecosystem, offers sub-millisecond trade execution and 400-millisecond settlement speeds—comparable to those of centralized exchanges. This marks a strategic move to bring institutional-grade performance to decentralized markets while preserving the core principles of DeFi [1].

Monaco functions as a Central Limit Order Book (CLOB), enabling real-time order matching and settlement. Unlike traditional decentralized exchanges, Monaco allows multiple applications to access the same liquidity pool, reducing the friction of liquidity bootstrapping. This shared model lowers costs for developers and improves depth for traders, making it easier to execute large trades without significant price slippage. Additionally, the protocol introduces PitPass, a revenue-sharing mechanism that incentivizes applications to route trades through its platform, directly rewarding developers while ensuring optimal execution for traders [1].

The timing of Monaco’s launch coincides with a significant surge in Sei’s user adoption. Monthly active addresses on the Sei Network have grown by 7,952% since launch, reaching 15 million as of August 2025. This rapid growth outpaces that of major layer 1 and layer 2 platforms such as Injective, Aptos, and Arbitrum. The increase in onchain activity reflects a broader shift in the market, with more traders and developers seeking high-performance blockchain infrastructure [1].

Sei’s native token, $SEI, has shown mixed short-term performance. As of the latest CoinGecko data, the token is trading at $0.3307, down 5.71% in a single day but up 5% for the week. Analysts, including Daan Crypto Trades, have highlighted the $0.39 price level as a key resistance point for potential further gains. The broader market context is also favorable, with tokenization projected to grow into a $30 trillion market by 2034, driven by increasing institutional interest and technological advancements [1].

The introduction of Monaco underscores Sei’s commitment to scaling decentralized capital markets. By offering execution speeds rivaling those of Nasdaq and faster settlement times than traditional systems, Sei is positioning itself as a serious contender for institutional onchain trading. As more applications integrate with Monaco and liquidity deepens, the protocol could serve as the backbone for a decentralized Wall Street, where real-time liquidity and institutional-grade infrastructure coexist with open-source transparency [1].

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Source:

[1] Sei Network Pushes Wall Street Liquidity Onchain With Monaco Protocol (https://blockonomi.com/sei-network-pushes-wall-street-liquidity-onchain-with-monaco-protocol/)

[2] Monaco Protocol (@MonacoOnSei) / X (https://x.com/monacoonsei)

[3] Takara Lend (@TakaraLend) / X (https://x.com/takaralend?lang=en)

[4] Trends - OneBitco (https://onebitco.com/trends)