Banks Building Blockchain Plumbing, Not the Entire System

BitMEX, one of the earliest exchanges to launch perpetual futures contracts, is shutting down on September 23 after 11 years. BitMart plans to wind down by January, according to Jean-Marie Mognetti, CoinShares co-founder and CEO.

Mognetti notes that several other crypto-related businesses are facing difficulties, including Movement Labs and Storj, which filed for Chapter 11 bankruptcy protection. However, he views this as a 'sorting' rather than a collapse of the industry.

Blockchain technology, Mognetti believes, will eventually be used to replace only the back-end plumbing of traditional financial systems, not the entire system itself. As a result, banks are now building on top of blockchain, and crypto exposure is shifting from unlicensed exchanges to regulated ETFs.