Market structure of cryptoasset exchanges: Introduction, challenges and emerging trends

Vladimir Skavysh, Jacob Sharples, Sofia Priazhkina and Salman H. Hasham

No 2024-2, Staff Analytical Notes from Bank of Canada

Abstract: Centralized trading platforms, or exchanges, are playing an increasingly important role in expanding the global crypto ecosystem. In contrast with their counterparts in traditional financial markets, these exchanges are vertically integrated and solely responsible for the execution, clearing and settlement of transactions. Moreover, exchanges often act as the custodian of users’ assets, which exacerbates the risk borne by its users. In this note, we provide an introduction to the functions that cryptoasset exchanges typically perform and contrast their design with infrastructure used in traditional financial markets. We also discuss several emerging trends in regulation and financial innovation that help address the problems cryptoasset exchanges face.

Keywords: Digital currencies and fintech; Payment clearing and settlement systems (search for similar items in EconPapers)
JEL-codes: G15 L1 (search for similar items in EconPapers)
Date: 2024-01
New Economics Papers: this item is included in nep-fmk, nep-ind, nep-mst and nep-pay
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.bankofcanada.ca/2024/01/staff-analytical-note-2024-2/ Abstract (text/html)
https://www.bankofcanada.ca/wp-content/uploads/2024/01/san2024-2.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bca:bocsan:24-2

Access Statistics for this paper

More papers in Staff Analytical Notes from Bank of Canada 234 Wellington Street, Ottawa, Ontario, K1A 0G9, Canada. Contact information at EDIRC.
Bibliographic data for series maintained by ().