Brokers Converge on Exchange-Like Models as Crypto Adoption Grows

The financial services industry is undergoing a significant transformation due to the growing adoption of digital assets and tokenisation. Historically, brokers catered to risk-takers, but with the rise of crypto, they are now also catering to a broader range of clients who expect round-the-clock access to multiple digital assets.

Brokers initially responded to client demand by adding cryptocurrency products, but this has led to a gradual shift towards exchange-like business models. They must now source specialist liquidity, monitor markets 24/7, manage settlement exposure, and keep pricing competitive despite volatility.

The distinction between brokers and exchanges is becoming increasingly blurred, with operational similarities mirroring those of digital asset venues. Regulators are also paying closer attention to market integrity, client protection, custody, operational resilience, and financial crime controls.

Tokenisation has the potential to accelerate this shift further by embedding market access, settlement, and record-keeping directly into blockchain infrastructure. This could lead to a decrease in the need for multiple financial intermediaries and a more democratic market structure.