Former President of FTX.US believes bank meltdowns can reshape crypto for traders

Former President of FTX.US Brett Harrison believes that the bank meltdown has opened up opportunities for post-trade settlement exchanges.
Similar to the equities market, traders could buy/ sell cryptocurrencies with on-chain matching and potentially delayed on-chain settlements.
Harrison recommends exchanges use on-chain proof-of-assets to facilitate trading, alongside a banking partnership for post-trade settlement.

Former President of FTX.US, one of the cryptocurrency exchanges of the FTX ecosystem sees opportunity in the bank meltdown of the past ten days. The banking crisis has raised questions about the availability and relevance of crypto-friendly banks.

Brett Harrison proposes an alternative crypto exchange structure where platforms use on-chain proof-of-assets to allow trading with on-chain matching and delayed off-chain settlement.

Also read: Is Binance CEO Changpeng Zhao picking winners and losers in stablecoins like BUSD, TUSD?

Why crypto exchanges could turn to equities market-like structure for settlements

The bank meltdown over the past ten days has triggered an uncertainty in the crypto ecosystem. Silicon Valley Bank and Silvergate Bank were considered crypto-friendly banking institutions. Their collapse has sent exchanges looking for new banking partnerships while US financial regulators continue their crackdown on cryptocurrency firms and institutions.

Brett Harrison, the former President of FTX.US told The Block in a recent interview that the crisis could introduce new opportunities in on-chain proof-of-assets and new structure for crypto exchanges.

If cryptocurrency exchanges draw inspiration from equities trading they could opt for on-chain matching to facilitate trade and offer a delayed off-chain settlement using a banking partner or financial institution.

This could open up opportunities for traders to trade cryptocurrencies like any other asset, or like equities.

In the long-term, the trading of digital assets looks very much like the trading of everything else, according to Harrison.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.