Cumberland: FTX Bankruptcy Triggered Some Important Market Structure Changes
According to cryptocurrency trading company Cumberland, the collapse of FTX last week will lead to substantial changes in market structure, including a departure from the all-in-one platform centralization model.
Cumberland’s Head of Trading, Jonah Van Bourg, said that the different aspects of cryptocurrency spot trading have been moving toward a paradigm of centralized, all-in-one platforms. Van Bourg specifically referred to lending, clearing, custody, and settlement.
According to Van Bourg, the cryptocurrency market structure will likely resemble foreign exchange markets. In foreign exchange markets, assets and capital are not kept on centralized exchanges.
The collapse of FTX is an undesirable consequence for any crypto company. Currently, the exchange has no further information on the number of remaining customer holdings.
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