Blockstation CEO Predicts Traditional Finance Could Overtake Crypto Exchanges

Blockstation CEO Jai Waterman believes conventional financial powerhouses could effectively harness their credibility and infrastructural advantages to dominate the digital assets trading landscape.

Traditional financial institutions manage the majority of investors' money, Waterman told Benzinga, citing well-established financial giants such as TD Ameritrade or Merrill Lynch.

"Traditional financial institutions can overtake the crypto exchanges…if the funds are already there and the assets are available to trade, investors will stay put, and that's where the trading activities will take place," Waterman said.

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Regulatory authorities are principally against unlicensed brokers and unregistered securities and that their role is to safeguard investors.

“When decentralization is utilized in a manner that brings security, transparency, efficiency and enhances investor protection, we see regulators continue to embrace it,” he added.

DeFi: Waterman also touched upon the integration of blockchain infrastructure with decentralized finance (DeFi), comparing the current system to a “gumball machine” that lacks responsibility and accountability.

To address this, he urged the need to protect investors and implement structures that are responsibly managed.

“The smarter way to go is to utilize the technology of the gumball machine and implement the infrastructure which protects investors," he said.

Responsibility is now on who is going to manage it and who is going to deal with any issues that may come up,” he said.

On the topic of the current state of crypto exchanges, Waterman described them as “disconnected." This is due to cryptocurrencies being traded without proper registration, difficulties in transferring money into crypto exchanges, and inconsistent trading prices across different marketplaces.

He advocated for recognizing cryptocurrencies as securities and incorporating them into securities marketplaces like stock exchanges.

Meme Coins Akin To Casinos: Waterman stated that while meme coins offer high returns, they are similar to gambling at a casino. Securities offered to the public must have proper disclosures and registrations, he said.

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