Rosario Ingargiola, founder and CEO of OTCXN, argues that accessing wholesale liquidity is one of the biggest challenges in the FX market today that could be alleviated by fintech solutions.
Speaking about different approaches to the FX market by fintech firms, Ingargiola says that one strategy is to look at areas where new technologies can reduce costs in terms of how firms operate and another – which he says OTCXN is pursuing – is to use technology to change the way that firms operate altogether.
The area where he sees the biggest opportunity to change the way that firms operate using fintech solutions is around using credit to access the FX market.
“I think the biggest problem in the market is the access problem: how do you access wholesale liquidity?” says Ingargiola, adding that at the moment there is a credit gap in the industry.
He maintains that there is a technical solution to this problem though, and that “blockchain is one of the foundational underpinnings of such a solution”.
Ingargiola explains: “The reason is because it lets you cross those trust boundaries. You can create an intermediary that can behave more like a utility and a neutral party, that doesn’t have to custody assets, that does not have to be a trusted intermediary, it doesn’t have to look like or behave like a prime-of-prime or a prime broker.”
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