Introduction
Layer-1 blockchain Sei is executing a strategic expansion across Asia, leveraging Japan’s rigorous licensing regime and key institutional partnerships as cornerstones of its growth strategy. According to Lee Zhu, Sei’s APAC growth director, the network has secured rare regulatory approvals in Japan while building institutional credibility through USDC integration and real-world asset tokenization. This dual approach combines regulatory compliance with technical advantages that position Sei uniquely against competitors Solana and Sui in the rapidly evolving Asian blockchain market.
Key Points
- Secured Japanese exchange licenses enabling listings on Binance Japan and OKX Japan through one of the world's most stringent regulatory processes
- Combines high throughput with EVM compatibility, allowing 90% of developers already coding in Solidity to migrate without switching costs
- Ranks among top three blockchains by trading volume in Korea despite lower market capitalization and total value locked compared to larger competitors
Japan's Regulatory Gateway
Sei’s Asian expansion strategy received a significant boost with its successful navigation of Japan’s notoriously stringent exchange licensing process last year. This regulatory milestone enabled listings on both Binance Japan and OKX Japan, marking a rare early entry for a Layer-1 blockchain into one of the world’s most regulated cryptocurrency markets. Lee Zhu emphasized that Japan’s clear regulatory framework provides the certainty needed for strategic planning, telling Decrypt that “clearer regulations in these markets help the team determine the best path forward and allocate resources effectively.”
The Japanese approval represents more than just market access—it serves as a quality signal to other Asian regulators and institutional partners. Zhu noted that by “staying compliant and responsive to regulatory changes, Sei aims to support further growth and ensure long-term success in the APAC region.” This regulatory-first approach distinguishes Sei from many blockchain projects that have prioritized speed over compliance, particularly in markets where regulatory clarity is still evolving.
Institutional Infrastructure and Tokenization Drive
Sei’s institutional appeal is being carefully constructed through strategic partnerships and infrastructure development. The deployment of Circle’s native USDC on Sei, combined with Apollo’s tokenization efforts through Securitize, creates a foundation for institutional adoption that extends beyond speculative trading. According to Zhu, these integrations “lower friction for exchanges and unlock a ‘gateway’ for structured products and derivatives”—precisely the type of financial instruments that attract traditional finance players.
The real-world asset (RWA) tokenization push represents a core component of Sei’s institutional strategy. By working with established financial players like Apollo through Securitize, Sei positions itself as a blockchain capable of handling the complex requirements of tokenized traditional assets. This approach aligns with Zhu’s observation that high throughput “is a filter” for institutions, noting that without capacity, “you’re not even in the door.” The combination of regulatory compliance and institutional-grade infrastructure creates a compelling value proposition for traditional finance entities exploring blockchain integration.
Technical Advantages and Developer Adoption
Sei’s technical architecture combines high throughput benchmarks with Ethereum Virtual Machine (EVM) compatibility, creating a unique positioning against competitors like Solana and Sui. This combination addresses what Zhu identifies as a critical barrier to developer adoption: switching costs. With approximately 90% of blockchain developers already coding in Solidity, Sei’s EVM compatibility means developers can migrate their projects without learning new programming languages or rebuilding from scratch.
The technical advantages are already showing results in key Asian markets. Despite having lower market capitalization and total value locked (TVL) compared to larger competitors, Sei ranks among the top three blockchains by trading volume in Korea. The network is also seeing significant traction in emerging sectors like GameFi and SocialFi, where Zhu reported that Sei has, on some days, outpaced Solana in daily active users. This suggests that while Sei may trail in traditional metrics, its user engagement in specific verticals is competitive with established players.
Balancing Institutional and Ecosystem Growth
Looking ahead, Zhu described the next 12 months as balancing two parallel tracks: deepening institutional adoption through RWA tokenization while simultaneously building a broader developer base in talent-rich hubs like Vietnam and Indonesia. This dual-track approach reflects Sei’s understanding that long-term success requires both institutional credibility and vibrant ecosystem development.
The expansion into developer-rich markets like Vietnam and Indonesia represents a strategic bet on the next generation of blockchain talent. These markets offer large pools of technical talent at competitive costs, making them ideal for bootstraping developer communities. Meanwhile, the continued focus on institutional tokenization ensures the network maintains the financial infrastructure needed for sustainable growth.
When asked about navigating potential market downturns, Zhu pointed to Sei’s origins during a bear market and the team’s “prudent, impact-focused” mindset. His observation that “in crypto, if you survive, you stand a bigger chance to be successful” reflects a long-term perspective that prioritizes sustainable growth over short-term metrics. This balanced approach to institutional and ecosystem development, combined with regulatory compliance and technical advantages, positions Sei for continued expansion across Asia’s diverse and rapidly evolving blockchain landscape.
📎 Related coverage from: decrypt.co