Cryptocurrency Trading To Get Easier for Wall Street: Here’s How

Paigambar Mohan Raj
Source: Tesmanian

Cryptocurrencies and other digital assets will be open to more support after the introduction of the Financial Information eXchange Protocol (FIX). Modern trading systems communicate with one another using FIX, which is a standard language. According to a press release on Monday, embracing the Digital Token Identifier (DTI) ISO standard helps TradFi (traditional finance) entities with crypto trading.

Various standardized ID codes are already in use by stocks, bonds, and other more traditional financial products around the world. This is to make it easier to find and trade assets. DTI’s introduction paves the road for TradFi to begin trading and accepting cryptocurrencies.

Will DTI increase cryptocurrency exposure in tradfi entities?

According to FIX’s Executive Director Jim Kaye, “adding the DTI standard to the FIX Protocol was an easy decision.” Kaye further stated that “the DTI extends the existing functionality to the world of digital assets.”

Additionally, Kaye mentioned the benefits of adding the DTI, including making it easier for the industry to audit their transactions and increasing transparency, thereby bringing more efficiencies to the market. According to the press release, authorities can use DTI to keep an eye on digital trades for anti-money laundering and risk management. Furthermore, almost 1,300 DTIs have already been issued, which include private ledgers and tokenized assets.

Wall Street giant, JPMorgan has announced plans of opening a cryptocurrency lab in Athens, Greece. However, the bank released a server earlier this year which said that 72% of institutions don’t plan on investing in crypto in 2023.

Despite the recent correction, the cryptocurrency market is still outperforming traditional assets. Bitcoin (BTC) is still up by around 65% since Jan 1. Although institutions have expressed their desire to steer clear of crypto, they might change their minds along the way. The DTI integration may make it easier for financial institutions to make their way into the emerging asset class, thereby driving cash inflows. At press time, the global crypto market cap stood at $1.21 trillion, down by 0.7% in the last 24 hours.