For Wall Street’s most sophisticated trading firms, the next alpha is onchain

Physical co-location and nanosecond advantages end as alpha shifts onchain. High-frequency trading firms own blockchain infrastructure.

Opinion by: Annabelle Huang, co-founder and CEO of Altius Labs

For centuries, the world’s traders and speculators have pursued one thing above all else: alpha. Not just returns, but an edge — a structural advantage that lets them capture value before everyone else. In modern times, they’ve achieved this through speed and precision, often beating the competition by mere nanoseconds.

As markets migrate to blockchain rails, however, the nature of alpha itself is shifting. Future alpha won’t come from co-locating servers next to an exchange or shaving nanoseconds off fiber routes. Rather, it will emerge from using onchain infrastructure in unique ways.

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