adamdbs
Onchain finance
Many aspects of finance will run onchain for the following reasons.
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Payments
Payments can be instant and extremely cheap. Plasma and Tempo are building for exactly this.
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Institutional products
Financial products from institutions are better onchain. They can be tokenized and be used as collateral across lending markets, and clients can get greater exposure to them via leverage (3F, Midas, Centrifuge).
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Liquidity
Certain financial products can have fixed liquidity windows for entering and exiting positions. Clients can get access to more liquidity via onchain companies (Liquid Lane).
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Markets that never close
Stocks and trading venues are open 24/7 (Hyperliquid).
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Hedging
Prediction markets let funds or companies hedge positions (Kalshi, Polymarket).
The products that allow these changes to happen are already live. Similar to AI, it is now about integrating them into traditional markets and going through the long journey of process change and adoption.