SRI says on-chain shift in market infrastructure could cut incumbents’ revenue by $20.3B

A Solana Research Institute analysis found that if financial market infrastructure shifts to public blockchains, incumbent providers’ annual revenue could fall by as much as $20.3 billion. SRI estimated that of the global FMI market’s $31.5 billion in annual revenue, only $11.2 billion would remain with existing providers after an on-chain transition. The analysis said the trading segment’s entire $13 billion in revenue would be exposed to competition, while about $6.8 billion of the clearing segment’s $10 billion in revenue would likely be retained. It added that the estimate assumes regulators do not take separate measures to protect incumbent providers. SRI said cost savings from the on-chain shift would likely accrue to users and new entrants.