Institutions know a 'good' exchange is built for failure

2026-01-10 16:20:10

Source: CryptoNewsNet Original Title: Institutions know a “good” exchange is built for failure Original Link: https://cryptonews.net/news/market/32256347/ An institutional-grade exchange executes trades at predictable prices, enforces clear limits, withstands traffic spikes and protects traders from accidentally moving the market with large orders. However, a truly good exchange is defined by how it behaves when markets break. In other words, what makes an exchange good is its ability to perform when markets get messy, not how polished it looks on the surface.

Recent exchange benchmarks have evaluated platforms across governance, licensing, audits, KYC, proof of reserves, uptime and other metrics. Results show progress across the industry. The number of top-tier exchanges has increased, with more platforms now sharing evidence that they actually hold the assets they claim, undergoing audits and standardized due diligence questionnaires. This represents a meaningful step forward in establishing higher standards for the industry.

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