Can a Prime Broker Offer Services for Trading Decentralized Derivatives?
Yes, a prime broker can offer services for trading decentralized derivatives, but it requires bridging the centralized and decentralized worlds. They would typically facilitate access to decentralized exchanges (DEXs) or decentralized finance (DeFi) protocols, managing the necessary on-chain transactions and providing the traditional institutional support like consolidated reporting and potentially margin.
However, the inherent non-custodial nature of DeFi contracts presents unique operational and risk challenges.