The Economics of Financial Infrastructure

The implementation of the financial metaverseMetaverse requires considerable fixed costs. They include setting up the tradingTrading venue, physical and software IT platform, risk and legal infrastructure and the implementation of a governance system. This means that there are significant time and effort required to build a new contract. Fixed costs are high. However, variable costs per market participants are low. The resulting substantial economies of scale mean that the financial metaverseMetaverse, like traditional finance, is increasingly useful with more users.