"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:

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)