What will it take for more Institutional Traders to leap into digital assets? SPEED! Apifiny CEO Haohan Xu shared how digital asset exchanges can win over Institutional Traders in an article for CoinTelegraph.
In the column, “How Digital Asset Exchanges Can Meet Institutional Investors’ Need for Speed”, Haohan takes an in-depth look at how blockchain-based solutions designed to enable fast cross-exchange transfers are now attracting institutional traders. He opens by noting, “With low barriers for entering, competition for digital asset exchanges is intense, with hundreds of exchanges now operating worldwide. This competition reduces margins for all of them and also lowers deposit and withdrawal thresholds. Add in a confusing patchwork of global regulations, and profitability challenges for digital asset exchanges loom large.”
From there, Haohan covers:
- The wide-ranging impact on digital asset trading brought on by the market fragmentation of so many crypto exchanges operating globally. These consequences include both pitfalls and opportunities.
- A next wave of institutional crypto traders coming on—bringing with them a potential 200% trading volume increase.
- The need for a single unified solution to help crypto exchanges significantly improve their performance in areas important to institutional traders.
- How an instant global settlement solution, based on the latest blockchain technology, would resolve slow withdrawals, deposits and transfers. Such a network could provide truly instant cross-exchange transfers and trade settlement for institutional crypto trading platforms, banks and traditional trading institutions. Real-time clearing and settlement for digital assets and payments that are secure, reliable, and convenient would result.
Learn more about how emerging technologies will enable digital asset exchanges to attract a new wave of institutional traders.