According to ME News, on February 9th (UTC+8), global institutional digital asset prime brokerage LTP held its annual flagship summit, "Liquidity 2026." During the roundtable discussion on "Trading Convergence: Bridging, Pricing, and Risk Management," Ludisia CIO Jeremi Long stated that the significant reduction in exchange latency has greatly enhanced market makers' pricing capabilities on CEXs and DEXs, while true risk management must prepare for the worst-case scenario.
Paul Kremsky, Global Head of Business Development at Cumberland, believes that the apparent depth of the crypto market is often illusory under extreme volatility, and he is particularly optimistic about blockchain-based forex trading. He believes that DeFi can aggregate liquidity with a single benchmark asset (such as USDC), and its capital efficiency is naturally superior to centralized models that require funds to be dispersed across a large number of fiat currency trading pairs.
Caladan's Chief Strategy Officer, Will Leung, revealed the current pain points for institutions, pointing out that multiple trading venues lead to long-term inefficient occupation of funds. He called for the establishment of cross-venue shared capital pools through collaboration between exchanges and custodians. He also stated that the lack of transparency and inconsistent behavior of crypto exchage rules are the Achilles' heel that limits institutions from releasing greater risk exposure.
Giuseppe Giuliani, VP of the Institutional Team at Kraken, emphasized that liquidity generation should not rely on incentives, but rather on the premise that risk can be clearly priced. For market makers, the system's online rate, tool availability, and rule transparency directly determine their willingness to remain on the market and provide liquidity during extreme market conditions. (Source: ME)
