"Bringing the Forex Market On-Chain Is Far More Complex Than Simple Stablecoin Swaps: A Widely Misunderstood Trillion-Dollar Market" (by Boci Boci on Web3) points out that in the $7.5 trillion/day forex market, actual "currency exchange" only accounts for 28%. The core is the global dollar funding network, carried by FX swaps (about 51%), and it hides over $80 trillion in off-balance-sheet "hidden debt." There is a structural mismatch between AMMs and institutional needs, and the retail forex scenarios that AMMs can accommodate may be less than 1–2%. Instead of building "on-chain forex AMMs," it's better to focus on permissioned chains and compliant infrastructure, targeting the pain points in the dollar funding and settlement layer. Read the full article:
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"Bringing the Forex Market On-Chain Is Far More Complex Than Simple Stablecoin Swaps: A Widely Misunderstood Trillion-Dollar Market" (by Boci Boci on Web3) points out that in the $7.5 trillion/day forex market, actual "currency exchange" only accounts for 28%. The core is the global dollar funding network, carried by FX swaps (about 51%), and it hides over $80 trillion in off-balance-sheet "hidden debt." There is a structural mismatch between AMMs and institutional needs, and the retail forex scenarios that AMMs can accommodate may be less than 1–2%. Instead of building "on-chain forex AMMs," it's better to focus on permissioned chains and compliant infrastructure, targeting the pain points in the dollar funding and settlement layer. Read the full article: