Market Risk Becomes Infrastructure (Settlement/Cyber) Risk in Crypto

1 gattodipiombo 2 6/19/2025, 8:57:44 AM papers.ssrn.com ↗

Comments (2)

gattodipiombo · 8h ago
Permissionless blockchains, the most common type of settlement infrastructure in crypto, attract increasing attention from the traditional financial sector. Adoption may offer cost and speed advantages vis-à-vis legacy solutions. There is, however, an oft-overlooked, tight link between volatile crypto prices and infrastructure availability and security. Most permissionless blockchains are operated by a decentralized set of independent validators, compensated in unbacked cryptoassets known as native tokens. Should such tokens incur a substantial and persistent loss in market value, validators might leave. Transaction settlement could slow down or halt entirely, and the infrastructure’s exposure to cyber attacks would increase.
joyjayking11 · 8h ago
New information.