CRYPTO 101

Ep. 715 Why Crypto Feels Broken Right Now — And How It Gets Fixed

Mar 26, 2026
Nirup Ramalingam, CEO and co-founder of BridgePort, builds middleware to free institutional capital stuck on exchanges. He explains off-exchange settlement, the $60B trapped-capital problem, why fragmented pre-funding crushes liquidity, and how better infrastructure, custody segregation, and regulation can unlock institutional participation.
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INSIGHT

Trapped Capital Is The Hidden Liquidity Problem

  • Capital efficiency is the core infrastructure problem causing fragmented, illiquid crypto markets.
  • Bridgeport enables off-exchange settlement so firms keep assets with custodians and allocate credit to exchanges in real time.
INSIGHT

Crypto Liquidity Follows Macro Risk Appetite

  • Crypto liquidity and price discovery depend on macro conditions because crypto behaves as a risk-on asset.
  • Low institutional demand during macro stress dries up buyers outside top tokens, creating volatile, thin markets for altcoins.
ADVICE

Design Systems That Separate Custody And Credit

  • Build institutional-grade systems that separate custody and credit to unlock leverage and broader capital flows.
  • Ensure custodians safeguard assets so lenders accept credit and trading firms avoid pre-funding across exchanges.
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