Trading firm TriliTech hires former Wall Street trader

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Trading firm TriliTech hires former Wall Street trader

A former trader from the Bank of America has been hired by TriliTech, a firm backed by the Tezos Foundation, to lead its DeFi initiatives.

Tezos is ranked 29th by total value locked, a metric that tracks how much crypto is locked up in a DeFi protocol's smart contracts, according to DeFiLlama data.

In September, the DeFi head of TriliTech took on Nicolas Streschinsky from TriliTech. Streschinsky has been the same director at Maven Securities, a global trading firm.

Streschinsky has worked as a trader at various Wall Street firms, including Bank of America, UBS, and Credit Suisse.

The new hire is part of TriliTech'sbroader effort to attract DeFi applications to Tezos, the company said in a statement.

TriliTech's objective is to support outside projects on the chain through grants and investments, with funding from the Tezos Foundation Mike Mendes, another recent hire who joined in January to lead the Defi partnership team, said DL News.

In the first half of 2023, just over $18 million in grants were issued and the Tezos Foundation has a treasury worth $520 million, which includes a mix of cash, Bitcoin, XTZ and other assets.

The firm's new hire boosts the trend in crypto markets, where layoffs have become the norm. There have been an estimated 30,000 crypto workers laid off since April 2022, including pacesetters like Crypto.com and Kraken.

During this period, some traditional finance graduates have opted to leave crypto, such as Galaxy Digital's Goldman Sachs student Danielle Johnson, who left her role in May after just a year in crypto.

Streschinsky is still unafraid of the crypto exodus.

He first exchanged crypto in his hedge fund, Brevan Howard, where he became interested in blockchain and was eager to see how blockchain applications could revolutionize finance.

Decentralised finance can change this, and it's not just for the regular investor - high-net-worth investors are also interested in it, Streschinsky said.

Streschinsky and Mendes share the desire to attract more decentralised exchanges to Tezos blockchain.

Streschinsky, a trader in the derivatives market, said: ''I don't think we are going to have a derivatives exchange''.

Streschinsky, a professor of physics at the University of California, told DL News. Cryptocurrency analysts said that more speculative ways to play the market attract more users, saying that Coinbase's offering users less speculative plays may explain Binance's larger market share.

In addition, giving users the option to trade derivatives is also crucial, particularly offering things such as perpetual futures, or perps, as they are more commonly known.

Perps are a type of futures contract that maintains no expiration date and enable traders to continually place leveraged bets on price movements.

While perps pre-exist crypto, they have come to be known in the past decade due to the trader's affinity with them - especially because of the leverage opportunities available through perps.

The XBTUSD perpetual exchange was the most traded Crypto derivatives product of all time, with more than $3 trillion in total volume on BitMex alone, according to the exchange.

The top line is that incentivising people to put leverage trades increases trading and volatility and is better for everyone, Streschinsky said.

Adam Morgan McCarthy, a London-based Markets Correspondent at DL News, is the head of the London market news division of DL News.