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.”
Global: Have we invented the technology to replace us? I recently hosted a meeting of C-suite bankers to talk about Artificial Intelligence (AI) in banking. It was a great discussion and my summary would be: it’s scary and exciting.
LatAm: Stori secures $50m in debt capital Mexican fintech Stori announced it had received an additional $50 million credit line from impact-focused debt capital provider Community Investment Management (“CIM”) and achieved a significant milestone by reaching 2 million credit card customers.
John has been in communications since graduating from Creative Communications at Red River College Polytechnic in Winnipeg in 1992. He launched one of Canada's first digital-only local news sites called Winnipeg First in 2007, which led to digital editor postings with the Winnipeg Free Press and Edmonton Journal. In 2012 he joined Bankless Times as managing editor, later becoming president and CEO. He and the Bankless Media co-founders completed a sale and exit in August 2021.