The next 12 months will see a significant change – a Great Unbundling – in the structure of crypto institutions. Companies in the industry will begin to specialize in individual pieces of crypto infrastructure – such as execution, brokerage, clearing, settlement, and custody – rather than offering a wide range of services under a single roof.
This shift towards specialization will allow companies to focus on their areas of expertise, leading to increased efficiency as well as lower costs for clients. It will also generate innovation within the industry, further improving the quality of services offered.
One of the main benefits of unbundling is the increased choice it offers. Rather than being limited to the services offered by a single company, clients will now be able to select the best solution for their specific needs from a range of specialist providers.
The unbundling trend is not limited to the crypto industry. Similar developments are taking place in traditional financial services, as well as in other sectors such as healthcare and transportation. The decentralization and disintermediation made possible by blockchain technology is driving the unbundling of many industries, leading to the emergence of a more modular and specialized economic landscape.
Over the past three years, we’ve been hard at work in Membrane, building the clearing infrastructure of the future. Membrane offers an integrated network linking crypto exchanges, custodians, wallets, and trading desks, allowing for seamless communication, transactions, and data exchange.
Membrane’s netting and settlement solutions will enable increased transparency and capital efficiency, as well as decreased risk across trading and lending operations. This will be particularly beneficial for large financial institutions, allowing them to more easily enter the crypto market and take advantage of the opportunities it offers.
An unbundled ecosystem requires strong interoperability between the various specialized companies. The success of the unbundling model depends on the smooth integration of these different services. This will require the development of standardized protocols and APIs to facilitate interactions and transactions between counterparties. The Membrane standard for clearing, netting and settlement is a critical part of this standardization and interoperability.
Unbundling is sure to bring about major changes in the way crypto institutions operate, encouraging the development of new technologies and business models and promoting growth and innovation. Membrane’s clearing infrastructure will play a crucial role in enabling the seamless integration of these specialized services and facilitating the smooth functioning of the decentralized economy.
Overall, the move towards specialization and unbundling is likely to bring significant benefits to the crypto industry. It will create a more efficient and cost-effective environment, while also driving innovation and development of new technologies. The decentralized economy of the future is sure to be a dynamic and exciting place, and the great unbundling of 2023 will be an important step towards its realization.
NOTICE: This article is intended for general information, educational and discussion purposes only. It is not an offer, inducement or solicitation of any kind, and is not to be relied upon as constituting legal, financial, investment, tax or other professional advice. A professional advisor should be consulted for your specific situation. Digital assets are highly volatile and risky, are not legal tender, and are not backed by the government. This article may contain views or opinions of the author that do not necessarily reflect the opinions, standards or policies of Membrane. We expressly disclaim all liability and all warranties of accuracy, completeness, merchantability or fitness for a particular purpose with respect to this article.