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Saturday, 28 January 2023
Tradeview Markets Introduces Liquidity Connector (ILC) to European Markets

Tradeview Markets Introduces Liquidity Connector (ILC) to European Markets

2022-10-31

The European market has been historically slow to adopt digital technologies. Banks and other financial institutions have also been slow to adopt blockchain-based solutions. But with digital and blockchain solutions, European financial institutions will be able to increase their efficiency and reduce costs while also improving their customer experience and loyalty programs.

That is because various European financial market players have now began integrating smart contracts and blockchain solutions. What used to be separate segments of the financial services industry are now coming together under the same roof, leading to a new ex-ante standard for financial marketplaces.

Now, several European financial market players, including the leading marketplaces in the region, have introduced liquidity connectors to improve the liquidity of their marketplaces.

This article will review the significance of the liquidity connector and its role in European financial markets.

What is a liquidity connector?
A liquidity connector is a software tool that allows businesses to easily exchange fiat money and different types of digital assets. The connector makes use of a blockchain-based solution to record all of the relevant information needed to transfer money across multiple digital assets. The liquidity connector works much like a traditional bank account.

A business pays for the services it offers using the cryptocurrency and then lends the money to other business entities. In return, the business entity receives the relevant digital asset. The money is then automatically converted back into fiat money at the end of each day.

How liquidity connectors work?
A liquidity connector is a software tool that allows businesses to easily exchange fiat money and different types of digital assets. The connector makes use of a blockchain-based solution to record all of the relevant information needed to transfer money across multiple digital assets. The liquidity connector works much like a traditional bank account. A business pays for the services it offers using the cryptocurrency and then lends the money to other business entities. In return, the business entity receives the relevant digital asset. The money is then automatically converted back into fiat money at the end of each day.

Key benefits of a liquidity connector
For a company to expand its business operations, it requires access to financing. A loan from a financial institution is usually Term Asset-Backed Securities Loan (TABL), which is secured by the assets of the borrower. The borrower may also take out a conventional mortgage to help with the purchase of real estate.

However, some industries require less security, like retail stores, which may want a simple line of credit. This is where a liquidity connector could be a helpful tool. With a liquidity connector, businesses can exchange fiat money and specific digital assets such as Bitcoin, Ethereum, and other cryptocurrencies with no added security risks.

Conclusion
European financial institutions have now began integrating smart contracts and blockchain solutions. What used to be separate segments of the financial services industry are now coming together under the same roof, leading to a new ex-ante standard for financial marketplaces.

Now, several European financial marketplaces, including the leading marketplaces in the region, have introduced liquidity connectors to improve the liquidity of their marketplaces.

The liquidity connector will allow financial marketplaces to connect with each other, enabling cross-selling and cross-buyback functionality across multiple financial products and channels.

Furthermore, the connectors can help marketplaces to increase customer satisfaction through automated customer Due Diligence (EDD) and Fraud detection tools.

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