For decades, firms engaging in what is known as “high frequency trading” and “algorithmic trading” have cornered the market on transactions that utilize a combination of advanced computer algorithms, bespoke hardware and special access to opportunities to generate returns that are often more than 30% above the expected market return, year after year. The tools have historically been locked in firms that allow access only to investors will a large enough net worth to fund a significant up-front investment. The advent of stable-coins and machine learning (capable of generating custom, AI-driven investment plans) along with the development of crypto derivative trading is offering the opportunity to open the market to these types of investment classes. 

The Reed Smith On-Chain team has enjoyed its time interacting with the industry experts at Consensus 2023 in Austin, Texas, and is looking forward to the continued discussions and panels involving industry leaders and innovators.