An overview of what is happening in the crypto markets, summarised by Crypto Finance AG Senior Trader Patrick Heusser in the market commentary.
Financial innovation is great. Anyone who says that financial industry workers are not creative hasn't got a clue.
Some of you have read, or may remember, the various articles I have written about financial product innovation in the DeFi space. The latest article I wrote was on the "Iron Bank". Rahul (a guest writer for Messari) and a fellow I follow on Twitter put together a very nice report about the fixed income protocol developments in the DeFi sector. The report touches on many topics and projects that I have written about in the past, and shows the connections and relationships they have with each other.
I am fascinated by the speed of innovation. But it also makes me wonder about the knowledge gap issue. Most investment banking employees have at least heard of the products in the Messari report. Some understand the use and mechanics of them, BUT only a few have in-depth knowledge of pricing and the risks involved with these products.
It all comes back to what I believe is the big change that decentralised and permissionless technology will bring. The power and responsibility returns to the customer/user. However, especially in finance, this means that you need to be current on the subject and also have a flair for coding and technology. I have a hard time imagining my brother hedging his fixed rate mortgage with a floating rate one via an interest rate swap, which he could do on the horizon.finance platform.
I believe there is still a need for a "liaison" or a universal platform of some kind that is able to guide the "not-so-knowledgeable" people through the processes. Maybe neo-banks will take on that role... who knows...
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