Interesting links

Blockchain will bring trust back into capital markets

Just read a really good article by Frederik Gregard (CEO of the Cardano Foundation) on the Cardano Foundation forum on the recent GameStop events. Frederik opens:

If recent events have revealed anything, it is that trust in the traditional financial infrastructure powering our global capital markets has been eroding—especially among retail investors.

The GameStop (GME) short-squeeze, driven by individuals who came together online, is a testament to what can happen when power is pushed to the edges. Huge volumes, unexpected buying pressure, and the impact of a handful of market participants showed how brokerage and post-trade processing capabilities can quickly be pushed to the brink.

While the financial world is still reeling from these events, the key message for every capital market participant is that critical parts of our infrastructure need future-proofing.

As it happens, there is already a financial market infrastructure revolution long in the making that lends itself perfectly to the principles of transparency and trust—blockchain. Here we explore why blockchain can provide the core infrastructure required to reimagine the broker-side and post-trade landscape in capital markets.

At ADAvault we are of the view that GME events may be seen as a one of the trigger events for DeFi adoption in coming years, and that Cardano is uniquely placed to help drive that transformation.

Worth reading the article in full.