Paxos has announced it will add former New York Stock Exchange CEO Duncan Niederauer to its board of directors as blockchain companies are increasingly testing new blockchain technologies for exchange trading and post-trade settlement; Paxos is a blockchain service provider for the financial services industry; Niederauer says blockchain technology has the potential to revolutionize post-trade clearing infrastructure. Source
This week, we look at:
Proposed US regulation from FinCEN, legislation from the House of Representatives, and UK FCA registration requirements that would impact the crypto industry
The difference between competition for share within an established market, and competition between market paradigms (think MSFT vs. open source, finance vs. DeFi)
The crypto custodian moves from BBVA, Standard Charters, and Northern Trust
The bank license moves from Paxos and BitPay, as well as the planned launch of a new chain by Compound, in the context of the framework above
Permissionless finance is a paradigm breach. It pays no regard for the very nature of the incumbent financial market. Without banking, it creates its own banks. Without a sovereign, it bestows law on mathematics and consensus. Without broker/dealers, it creates decentralized robots. And so on. It tilts the world in such a way as to render the economic power of the incumbent financial market less important. Not powerless -- the allure of institutional capital is a constant glimmer of greedy, opportunistic hope. But the hierarchy of traditional finance does not extend to DeFi, and thus has to be re-battled for the incumbent. This is cost, and annoying.
Let me introduce you to MMM. While decentralized finance and digital asset companies bend over backwards to be customer centric and reform financial services (each in their own way), MMM is a pretender. It is a pretender that has stolen the language of the crypto economy to create a cancer in its body.
