As crypto-exchanges grow, competition becomes hotter. Of course, this competition can be hampered by regulations and as we see tighter regulations roll out across the industry, we should expect crypto-exchanges to switch on their imaginations in order to help them provider their customers with new and unique products that in turn, will mean new customers turn to them, ahead of their rivals.
Therefore, the future of crypto-exchanges lies not within the exchange itself, but within the different skills and abilities the exchange has, is it adaptable and can it launch new products in an instant?
Business Insider UK have touched upon two prolific exchanges that are doing just this. It highlights not just the power that some exchanges have, but also shows just how malleable the cryptocurrency exchange business model is, something that is pretty important when it comes to adaptability and versatility.
According to Business Insider:
“Coinbase has acquired securities dealer Keystone Capital. As a registered broker-dealer, Keystone can operate as a registered investment adviser and offer alternative trading systems. Coinbase will then be able to offer a larger set of cryptocurrencies to its customers, which will likely enhance their user experience. Coinbase still needs regulatory approval to use Keystone’s license, but it’s confident that it will be granted approval in the next few months.”
“Fintech unicorn Circle has plans to apply for a federal banking license, which would allow it to offer more services to its customers. Additionally, it wants to become registered as a brokerage and trading venue under the SEC to enable investors to buy and sell tokens that are classified as securities by the regulator. Similarly, to Coinbase, this would enable Circle to introduce more cryptocurrencies on its exchange but acquiring its own license may take a bit longer.”
We should expect to see more plans like this unravel, as exchanges becoming more prominent. In order to stay ahead of the game, exchanges need to work in innovative ways to both retain their customer base and to allow for the customer base to expand. Naturally, when the big exchanges like Coinbase make moves like this, smaller exchanges will follow.