Capital markets are encumbered by out-moded legacy infrastructure. Retail fintech is essentially just slicing the same old data into utility enriched user experiences for consumers. More emergent digital asset platforms are currently inefficient due to a lack of liquidity. The first two problems should concern the incumbents because there is a clearly established trend within markets underpinned by digital technology for the manufacturing cost to head to as close to zero as possible. Already evidenced in capital markets by trading fees plummeting to around 20 basis points from much loftier highs. Coupled with negative interest rates and all the big tech companies launching into the payment space, the battleground for omnipotence has never been harder fought.
We also see a shift towards asset holders who are capable of securely supporting the widest assortment of digital assets and the plumbing necessary to enable them to be exchanged freely.
Alkemi’s platform provides the non-custodial infrastructure for digital assets to connect with exchanges. Facilitating open access to liquidity and streamlined settlement for our customers (e.g. institutional capital allocators) and partners (exchange venues & third party providers), solving the problem of digital asset market inefficiency. Their modular infrastructure technology platform ais powered by decentralized liquidity with three applications at the core: 1) Smart Order Router; 2) Arbitrage Engine; and 3) Clearing and Settlement.
To read more on why we invested in Alkemi please read our overview here.