Institutions want to get into crypto. No one argues this point much anymore. The thing is, it’s not easy for traditional finance players to participate in blockchain-based digital asset markets.
And while regulation is often cited as the main problem holding back institutional adoption, there are other, more logistical issues that need to be addressed as well.
The most significant bottlenecks faced by TradFi traders looking to trade digital assets include:
Counterparty riskCollateral managementBalance sheet control
Today’s stock exchange process dates back at least 100 years, with things gradually becoming digitized within the last 50.
Due to the way blockchain ledger technology works, crypto trading looks a little different. Namely, crypto exchanges require traders to prefund every trade.
This creates an operational nightmare for trading firms because it requires them to manage spreadsheets that track trades across multiple exchanges and custodians as well as bilateral settle
We współpracy z: https://blockworks.co/news/understanding-the-biggest-institutional-adoption-bottleneck-poor-settlement/
