Potentially stupid market structure question of the day: are 100% of Coinbase crypto trades executed on-chain? Is it possible for trades to happen off-chain?
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Fortunately Bitcoin solves this
I'm obviously being glib but there are some interesting custodial solutions emerging, e.g. the custodian 'pledging' your assets to the exchange rather than transferring them, and settling it daily into a wallet that the exchange also maintains at the custodian.
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Also has the benefit of free and near-instantaneous transfers between exchanges (because it's a db update at the custodian, not an on-chain transaction) which is a benefit in fast markets. Biggest downside is that not many exchanges are signed up yet.
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Very interesting. Thank you!
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