Financial organizations have been through multiple patches of fate lately, with bullish gains at the beginning of the year leading to bearish declines in March. This price predicament was still not enough to dampen developments and updates in the industry.
On 8 April, Imran Khan, a partner at Volt Capital, revealed that the company was launching a new initiative called the Chicago DeFi Alliance. This will be done in conjunction with the other three organisations.
The alliance will be associated with three companies: Cumberland DRW, Jump Capital and CMT Digital. Volt Capital said that the alliance will provide support and guidance to future entrepreneurs and start-ups. The mission was to provide these individuals with a ” real world” trading atmosphere so that they can observe their behavior and attract liquidity.
Liquidity has been a problem in today’s financial markets because of world industries coming to a screeching halt because of the spread of the coronavirus. This has resulted in governments pumping massive amounts of capital back into society, bringing up the risk of a recession. Volt’s CDA venture was a step in the right direction to bring two different financial ecosystems together.
According to an official Medium post released by Volt:
“We are looking to partner with early-stage founders building the next generation of financial tooling. Being accepted into the program allows startups to leverage CDA’s expertise in sourcing liquidity and product strategy to scale their offerings to professional traders globally. We are looking to partner with early-stage founders building the next generation of financial tooling. Being accepted into the program allows startups to leverage CDA’s expertise in sourcing liquidity and product strategy to scale their offerings to professional traders globally.”
The latest Chicago DeFi Alliance [CDA] reiterated that the mission was to bridge the gap between DeFi and traders who had little or no experience in the field. Some of the initial members of the CDA include TD Ameritrade, Arca, Compound, dYdX and DV Trading. Chicago’s trading ecosystem has become a major hub for the derivatives market, with several organizations laying claim to the vast playing field.
Peter Johnson, the head of Jump Capital added that he joined the CDA because of the lack of DeFi knowledge in the ecosystem. He hoped that in the near future, the efforts will pay off and people can choose where to invest in the DeFi ecosystem. The educational aspect of the CDA is just an added bonus to a framework trying to provide seamless remittance connections.
Imran Khan opined that the company would love to see a change in the way people think about the DeFi system over the next four weeks. According to him, the CDA was a dual funnel that helps DeFi companies get liquidity and feedback while at the same time giving the traditional trading side more insight into DeFi. Many traditional traders were still under the belief that there were many unnecessary risks associated with the DeFi industry. This was a notion that the CDA intended to change.
