[ I N D E P T H | D I G I T A L A S S E T S ]
bolster efficiency comes into play . Limitations linked to message-based architecture is something market participants are fully aware of , and something that the seemingly parallel nature of digital assets emphasises even more .
“ You just can ’ t do the sort of composable transactions and achieve the reduction in requirement for reconciliation when you ’ re still sending messages from one platform to another platform . We ’ ve optimised , but at the same time are inherently constrained by the fact that it ’ s not instantaneous ,” says Newns .
Cryptocurrencies , specifically , have been viewed as attractive due to their ability to be traded 24 / 7 , including on weekends and holidays . Unlike traditional financial markets , such as the equities space , cryptocurrencies are not limited by set trading hours and can operate continuously . Given that they are decentralised and traded across a range of global exchanges , they allow participants to buy , sell and trade cryptocurrencies at any time .
Whether traditional finance will mirror the around-the-clock model is yet to be seen , with varying arguments on whether demand for it exists and whether or not the shift is even feasible .
“ You do see some discourse in the news about clients wanting to shorten market hours in certain asset classes , so we should
“ Tokenisation […] has the potential to be a disruptor and a game changer for the financial industry .”
CHRISTOPH HOCK , HEAD OF TOKENISATION AND DIGITAL ASSETS AT UNION INVESTMENT
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