The Scoop Mike Cagney on bringing every market onchain
May 3, 2024
Mike Cagney, co-founder of Figure Markets, talks about the future of equity trading on the blockchain, DeFi lending, rebuilding crypto's credit markets, and the institutionalization of crypto. He also discusses the need for a 'marketplace of everything,' and Wall Street's appetite for ATS, along with regulatory considerations.
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Native Digital Assets Will Trade On Chain
- Figure expects native digital assets to trade on chain and believes decentralized exchanges will handle those markets.
- Cross-collateralization and immediate security perfection remove the need for traditional intermediaries like introducing brokers and prime brokers.
MPC Enables Cross‑Chain Collateralization
- MPC wallets let assets remain on their native chains while creating security-perfected interests that can trade on an exchange.
- That design enables true cross-collateralization across Bitcoin, Ethereum and other assets without moving tokens off-chain.
600 Cap Tables Proved Tokenization Isn't Enough
- Figure onboarded 600 company cap tables onto provenance expecting secondary trading but found there was no market making or demand to trade those stocks.
- They learned tokenization alone didn't create liquidity without market structure and participants.