The following is an excerpt from today’s Global Newsletter.
The Financial Times (hard paywall) reported that some major players in traditional finance are taking the crypto exchange bull by the horns to create their versions in a quest for market share.
“Some of the finance industry’s best-known names are building their own digital markets trading platforms, betting that fund managers will prefer familiar and trusted brands to the opaque cryptocurrency exchanges that dominate the sector,” the FT said in their story.
They are making a bet the asset managers will want to trade crypto, but they think the existing exchanges are opaque, secretive, and scammy. Their sense must be if a tradfi company has an exchange with a known reputation, traders will find greater comfort there.
Make no mistake; this is a move for the tradfi hardliners, not crypto natives. Ironically, crypto natives would likely scoff at the alleged security of a traditional institution’s exchange. A cynic might suggest a tradfi exchange would be no less opaque, secretive, and scammy.
It may also be targeting those asset managers that FTX and Celsius burned.
It would also likely set up a two-tier structure, with a shallow retail-facing exchange and a deep institutional one where prices are more competitive, executives told FT in their story.
It might help sort out the regulatory issues we’ve seen in the space since the dawn of Satoshi Nakamoto’s “big idea.”
From Fintech Nexus
| LatAm/USA Fintech Kiwi gets $80M to lend to Latinos in the U.S.
By David Feliba
Latin American fintech Kiwi raised $80 million in funding to boost lending to underbanked Latino migrants in the United States.
| Europe Is the digital euro near? Prototype exercise results revealed
By Isabelle Castro Margaroli
Although some of the prototype design challenges could limit usage, exploration of the CBDC shows positive steps.
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