Digital Asset cofounder and CEO Yuval Rooz recently shared insights on the ongoing crypto market sell-off, which he believes is forcing a reassessment of so-called 'empty shell' token models. According to Rooz, this turbulence is pushing institutions toward blockchain solutions that prioritize real business value, privacy, and predictability. In an exclusive interview, Rooz emphasized that his core customer base remains unfazed by the market's volatility. He pointed to the Canton Network and the derivatives exchange Hyperliquid as prime examples of projects that attract serious investors. Over the past month, the cryptocurrency associated with the Canton Network has risen by 25%, while Hyperliquid's token has surged by 28%. Rooz articulated that many current crypto narratives have proven to be mere illusions, lacking substantive backing. He stressed that the architecture and token design of blockchain solutions are crucial for attracting institutional clients. For him, the reliance on bridges for interoperability presents significant risks, as these often leave assets vulnerable to hacking. Furthermore, the regulatory scrutiny surrounding bridges has intensified due to their role in obscuring transaction flows. In 2025, estimates indicated that over $21.8 billion in high-risk crypto transactions flowed through decentralized exchanges and cross-chain bridges. This systemic risk has drawn the attention of regulators, particularly in light of the growing use of privacy-focused tools. Institutional clients like Depository Trust & Clearing Corporation require privacy, seamless interoperability, and predictable costs, which they find lacking in general-purpose public chains. Despite Rooz's concerns, some major asset managers are already embracing public networks like Ethereum for tokenized products. BlackRock, for instance, launched the USD Institutional Digital Liquidity Fund on Ethereum in 2024. Similarly, Franklin Templeton has issued tokenized funds on public blockchains such as Polygon and Stellar. Banks are also exploring the use of public chains alongside permissioned systems. Notably, JPMorgan has rolled out JPM Coin on Coinbase’s Base network for institutional clients, with plans to integrate it into the Canton Network in 2026. Rooz expressed excitement about these developments, noting that clients are increasingly viewing stablecoins in a new light, assessing their risk profiles before selecting their preferred payment methods. As the crypto landscape evolves, it appears that institutional players are becoming more discerning, favoring solutions that offer genuine utility and stability over speculative ventures. The industry's focus seems to be shifting towards creating sustainable models that prioritize user value rather than speculative trading. This transformation could signal a new era for the cryptocurrency market, one that may be more resilient and grounded in real-world applications. As we move forward, the importance of effective architecture and design in blockchain technology cannot be overstated. These elements will play a pivotal role in shaping the future of the industry, as institutions seek solutions that align with their values and operational needs. In this evolving landscape, it will be fascinating to see how traditional financial institutions respond to the challenges and opportunities presented by blockchain technology. As the market matures, the narrative surrounding cryptocurrencies may shift, with a greater emphasis on utility and real-world applications rather than hype and speculation. The ongoing discussions around privacy coins, regulatory frameworks, and institutional adoption will continue to shape the future of the crypto ecosystem. Ultimately, the market's evolution will depend on its ability to adapt to the needs of its users while navigating the complexities of regulation and innovation. This delicate balance will be crucial in determining the sustainability and longevity of cryptocurrency as a viable asset class.