LMAX Group's Jenna Wright has shared her insights on the current state of cryptocurrency markets in this week's Crypto Long & Short, as reported by CoinDesk. According to Wright, marketsbreak down not from a lack of capital, but from capital being stuck in the wrong place. She notes that settlement cycles can trap capital, while risk reprices by the minute.
Wright makes the case that stablecoins and tokenization are quietly becoming essential components of the financial system, allowing money to move as fast as the risk it supports. This improved capital mobility could potentially mitigate the issues caused by trapped capital.