CryptoClearing

This article details a particularly contentious brawl between several panelists about the future of crypto:

https://www.bloomberg.com/news/articles/2018-05-02/a-verbal-cryptobrawl-breaks-out-at-milken-over-bitcoin-s-future

The following two quotes struck me as interesting, and worth some comment given my perspective on this area:

“Mashinsky said crypto assets will let people bypass banks.

 

‘You’re just making stuff up,’ Roubini replied.”

In fact, he’s not — Mashinsky is right, and LedgerX is seeing it all the time.

One of the most amazing use cases of crypto that we’ve seen play out is as a form of collateral, pledged in order to do trading in BTC derivatives. We have a ton of customers who pledge only BTC, use our day ahead swaps to convert a portion into USD, trade all manners of derivatives, and when they are done, they convert all the holdings into BTC and have us send it back to them on the blockchain.

It’s extraordinary that people can send us millions worth of BTC on a Saturday night, have it available within hours to support complex trading strategies, and when they are done have it sent back as BTC. They haven’t touched the banking system once throughout the entire process, something which I think is unique in the history of US federally regulated derivatives exchanges and clearing houses.

So go ahead — bypass the banks. It’s a real thing.