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Wall Street Bigwigs Ready to Challenge Coinbase, Binance, and Crypto Exchanges


After the disgraceful events related to crypto exchanges, they have come under close investigation.

The major roadblock may come from Wall Street.

As FT reported on May 31, the traditional companies, including Standard Chartered, Charles Schwab, and Nomura, are busy funding and building new cryptocurrency exchanges and custody platforms.

These giant Wall Street companies are betting that despite the last year’s market decline and the series of cryptocurrency scandals, fund managers still have the zeal to trade crypto.

Although the price declines and market setbacks may have turned many investors away, the Wall Street bigwigs are still confident.

TradeFi Powerhouses Cause More Challenges

The latest issues related to FTX bankruptcy and the Terra ecosystem collapse have highlighted the risks associated with investment through unregulated exchanges.

As such, a well-established firm with regulated attributes can challenge Binance, a cryptocurrency native exchange.

According to the Senior Analyst of Global Digital Assets at Bernstein, Gautam Chhugani, the investors of traditional institutions prefer counterparties with a long history.

Also, they usually lean towards well-established entities with proper regulation.

Seemingly, Coinbase and Binance may face competition from these new crypto platforms backed by legacy.

Traditional Finance Firms Might Have An Upper Hand

Traditional finance companies use high transparency to distinguish themselves.

Their main focus is providing additional transparency, especially by separating exchanges from asset custody to alleviate the conflict of interests and minimize risks.

For instance, Fidelity and BNY Mellon already operate different divisions for cryptocurrency custody.

Moreover, Nasdaq is anticipating acceptance of its own service.

The CEO of Laser Digital, a cryptocurrency trading and VC company owned by Normura Jez Mohideen, highlighted certain crypto exchanges that failed to offer the best prices or execution.

He believes that the active participation of traditional companies within the crypto space will lead to more transparency and unity in pricing.

TradeFi Investors are not Going Back.

According to a recent study by EY-Parthenon conducted on 250 asset managers, many respondents showed interest in traditional finance.

The result shows that up to half of the respondents want to consider changing from crypto-native groups to traditionally supported firms.

Moreover, about 90% of the participants showed their trust in the traditional financial groups to act as custodians.

Onu Peace
Onu Peace
Onu Peace is an experienced journalist in the field of financial news, providing latest updates and valuable contents for readers. You can connect with Peace on social media sites like Facebook and even on email:

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