The TFB COO take on recent crypto expos, offerings, and more
Author: Albina Zhdanova
This week, Albina Zhdanova, the COO of Tools for Brokers, is sharing her insights and views on the latest experience at the crypto event, as well as thoughts on what is happening in the crypto world in general.
Markets are going through a rough time at the moment. Long-term investors try to pray the red graphs away, and short-term traders are frustrated about missing out on shorting opportunities.
After recently attending a crypto expo in London, it became apparent that the crypto market is more put together and technologically advanced than the FX market. We saw top-tier offerings that include everything from the basics, like physical storage, to licensing.
Something less common at the expo was the clients who were willing to pay. As we explored the site and met traders and fund representatives, we could not locate the end-users for those systems.
At TFB, we have been under the impression that crypto is a brand new market that is tricky to promote to existing clients. There are far too many high-risk uncertainties for the unguaranteed gain. There definitely are deals where FX brokers can sign with crypto, but they are rare because brokers are being cautious.
At the same time, when we are talking with active crypto traders, whether private or institutional, they refer to the systems popular among FX brokers as outdated. And they mean outdated to the point where they are not interested in dealing with them at all.
To conclude, the two worlds of FX and crypto trading are not parallel; they are moving towards each other slowly and will intersect sooner or later. Certainly, there are points of intersection already, but they are not that common yet.
What does TFB offer in terms of crypto?
Tools for Brokers, naturally, provides access to crypto liquidities, and we have a certain number of crypto brokers signed with us already. One of the common requests we get lately is creating a crypto exchange.
The most exciting and promising solution right now is fund trading with liquidities via APIs.
An obvious obstacle to the development of this market is the uncertainty with regulations and payment and bank systems. Brokers are not ready to risk their licenses and prefer to wait out the turbulence.
OF ANY PRODUCT