Digital asset market structure is undergoing significant institutionalization. Institutional traders are deserting offshore venues in favor of bankruptcy-remote, regulated custody solutions to manage counterparty risk.
Bifurcation of Market Liquidity
Trading volume is concentrating within venues integrated directly with established clearinghouses and custodians. This dynamic has narrowed spreads for top-tier assets while depressing liquidity in secondary tokens.
Compliance Overhead
Stricter Anti-Money Laundering (AML) and Travel Rule enforcement globally has raised entry barriers for new market operators, favoring scale providers with existing compliance infrastructure.