Fixing Crypto’s liquidity problem will increase adoption
PYMNTS asked business leaders their views on how to plan for the rest of 2023 and what they are asking their teams to focus on. Dr. Yan Zhang, CEO of Airswift, said the Airswift/Pelago team is working to build a crypto-liquidity pool designed to increase the liquidity available to facilitate payments.
Amid positive sentiments about the future of crypto, the industry now faces the challenge of fixing the worsening liquidity problem. The failures of exchanges and lenders like FTX and Genesis have frozen the market and caused people across the crypto landscape to seek withdrawals. The absence of liquidity behind these failures has been evident in crypto for some time, but the situation was exacerbated by contagion from traditional financial markets, which have experienced their own problems.
With this in mind, the main focus of the Airswift/Pelago team this year is to build a crypto liquidity pool designed to increase the liquidity available to facilitate payments, which will only increase crypto’s attractiveness as an asset class overall and broaden its appeal among investors. Pelago is a decentralized payment protocol that allows merchants to easily accept digital assets via a liquidity pool. To reduce the complexity of fund aggregation and payment transfers, Pelago has developed an industry-first liquidity pool model that is purpose-built for payments. Liquidity providers who contribute a single crypto-asset to Pelago’s liquidity pool profit from every transaction that uses their contribution to the pool, with no lasting loss.
We also emphasize the need to ensure our procedures are compliant, so our solutions include a mix of human expertise and automation. The Pelago protocol is fully computerized and leaves no room for human manipulation in the payment process. However, our team of experts handle on and off ramps to provide a smooth, integrated service. We work with world-class authorized providers to ensure that our clients do not face any compliance risks and that their money is handled safely.
With crypto rallying in the past quarter despite turmoil in traditional finance, the market has proven its resilience amid regulatory challenges and market turbulence. As the Airswift/Pelago team continues to work on building a liquidity pool, we hope to solve crypto’s liquidity problem and ensure that Web3 payment transactions are both efficient and compatible. By offering a streamlined and secure payment protocol, we believe that Pelago will contribute to the wider adoption of crypto, helping to unlock the full potential of this promising asset class.
