- 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.
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.
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