In the wake of the collapse of FTX, an intriguing opportunity has arisen in the landscape of cryptocurrency’s institutional market. Crypto Facilities, an enterprise linked with the cryptocurrency exchange Kraken since 2019, is exploring this opportunity with unmistakable zeal. The London-based business, which deals in futures contracts providing institutional investors with exposure to cryptocurrency assets, is in an exciting dialogue with the U.K.’s Financial Conduct Authority or FCA, according to a recent report by Bloomberg.
The firm’s aim is to extend its services to custody a more diverse proportion of client assets. But there’s a peculiar twist. The future contracts to be offered will be expressed in the actual fiat currency retained for the client. “`It’s a key driver as we expand out what we do in the institutional market across crypto”, said CEO Mark Jennings in the Bloomberg session. However, operationalizing such an initiative is not without hurdles.
An expansion of the entity’s multilateral trading license, which it secured last year, would be obligatory. The timeline for this amplification, as projected by Jennings, falls between six to twelve months. Anxious as it may sound, such a potentially hefty timeline offers much to ponder about.
In its glory days, prior to FTX’s dissolution, Crypto Facilities cites phenomenal trading volumes in the neighbourhood of $700 million to $800 million a day. However, the scene has grimmed over time and currently hovers at a much more humble figure around $100 million per day.
Such a reality brings us to ponder the extent to which markets can see-saw. For instance, data provided by CCData highlights that the total volume of the crypto derivatives market dipped over 12% to $1.62 trillion in August, showing a somewhat lacklustre performance for the second consecutive month in 2021. It poses a thought provoking question – can Crypto Facilities fill the sizeable gap left by FTX’s exit and resuscitate the market back to its glorious days?
While both Kraken and the FCA have remained mum for now, the overarching narrative promises plenty of action. As the plot thickens, spectators are left to watch this intriguing play unfold over time in the thrilling world of cryptocurrency investment. The stage, it seems, is all set. Let the games commence!
Source: Coindesk
