Introduction - Market Inefficiencies

Wall St: A One-Way Road

The financial landscape has long exhibited a clear divide between traditional markets and the burgeoning domain of blockchain and cryptocurrencies. While recent innovations have seen the gradual adoption of cryptocurrencies by traditional institutions, transitioning from crypto to traditional markets remains a complex, costly, and cumbersome process.

The time-consuming nature of moving assets between crypto and traditional markets often results in wasted time, increased expenses due to fees, and missed opportunities for investors. The multi-step process to transfer and convert funds can lead to a significant delay, preventing investors from seizing advantageous market conditions that might have otherwise resulted in substantial gains.

A further critical challenge in integrating these two spheres is the necessity for multiple intermediaries, leading to a repetitive and time-consuming series of KYC and AML checks. Naturally, these checks are important, but moving from a crypto exchange to a bank account and then to a stock trading platform may have to undergo three separate KYC and AML procedures for the same asset. This not only introduces inefficiencies for both users and platforms but also results in higher costs for everyone.

Traditional stock exchanges have also largely adhered to conventional office hours, posing accessibility challenges for individuals in different time zones. Despite advancements in fractionalization and reduced brokerage commissions, the market's core structure remains tied to a country's trading hours. This constraint inhibits global investors from capitalizing on time-sensitive opportunities and furthermore from accessing liquidity around the clock.