Alex Melikhov, the Chief Operating Officer (COO) of Oxygen, explained in a short interview the main principles of the first decentralized CryptoRepo platform and the premises for its launch from a crypto market perspective.
Alex commented that, “Many models of real finances are coming to the crypto economy. We see the explosion of exchanges, remittance services and lending services that are coming to the crypto world. But there is a bunch of tested and effective instruments that exist in real finance and can become a breakthrough in the crypto world, but they are not yet integrated into this new market. One of those instruments is repurchase agreements”.
In the real world, repo is an oil that lubricates financial markets. The repo market is around $12 trillion according to an ICMA survey in 2016. However, in the real economy, repo is available only for professional market participants like banks and broker dealers. In the crypto economy, many instruments are democratized and can become available for regular participants like market makers and traders.
According to Melikhov, repo agreements have to be embraced as soon as possible, as there are many long-term holders willing to start making yield on a long position, as well as active users and professional traders who can take advantage of more trading opportunities.