Anyone else hitting major KYB snags with non-traditional asset classes?

asked by u/marcus_fx · 15d · 2 answers

Been looking to diversify my offering into a few more exotic pairs and some tokenized assets, but the onboarding with a couple of the smaller, more agile prop firms and PSIs has been surprisingly clunky. Specifically, the KYB process seems to get hung up on demonstrating liquidity provider relationships for the less common pairs, even with solid financial statements and a clear operational history. It's not just the usual docs; they're digging deep into very specific LPs. Is this a common experience for those expanding beyond the major $EURUSD/$GBPUSD etc., or am I just picking the wrong new partners?

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Top answers

  • u/mwhite· 5 pts· 15d

    It's almost as if the 'agile' firms are still figuring out what 'agile' means when it comes to compliance for anything beyond blue-chip stocks. Good luck explaining a stablecoin collateralized by rare stamps to a risk officer who thinks Bitcoin is still in beta.

  • u/smoke_tester· 4 pts· 15d

    I've noticed a similar trend. It feels like the compliance frameworks haven't quite caught up to the pace of innovation in asset tokenization and the emergence of more niche liquidity pools, leading to these bureaucratic bottlenecks.

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