Pyth Network, the “universal” price layer powering the so-called next generation of finance, recently announced its partnership with Sygnum Bank, a global digital asset banking group and key player in institutional finance.
By joining the Pyth ecosystem as a partner, Sygnum brings its price data and technological capabilities to DeFi to create a replacement for the legacy data sources and unsustainable cost of market data in the finance industry.
Mike Cahill, CEO and co-founder of Douro Labs, the blockchain infrastructure company contributing to Pyth Network notes that we have to “change the narrative when it comes to DeFi replacing or competing with TradFi.”
Cahill explains that the reality is that on-chain infrastructure is here to enhance our current financial system—enabling “a new global financial market that’s fair, open, and accessible to all.”
He added that the best innovations “don’t reject existing systems; they upgrade them with better infrastructure, more efficient liquidity flows, and enhanced transparency.”
He also mentioned that this is why DeFi’s biggest challenge is “earning the confidence of the institutions it seeks to work alongside.”
Cahill pointed out that Pyth Network’s partnership with Sygnum “signals a fundamental step forward in building the financial system we all deserve.”
As covered, Sygnum claims it is the first digital asset bank.
Their reputation for combining technology with institutional-grade trust has made them a prominent name in global finance.
Additionally, with its banking license in Switzerland and regulated operations in Singapore, Luxembourg, and Abu Dhabi, Sygnum acts as a “trusted gateway for institutions and professional investors to break new ground in the digital asset economy.”
Traditional finance is no longer observing DeFi from the sidelines, but rather, it’s becoming an active participant.
With institutions like Sygnum joining the Pyth ecosystem, developers now have access to data from a network of “over 1,000 real-time feeds spanning digital and traditional assets.”
We caught up with Mike Cahill to talk about some of these developments.
Our chat with Cahill is shared below.
Crowdfund Insider: What’s the biggest challenge that the financial industry faces today, and how can decentralized technologies help address this challenge?
Mike Cahill: Right now, there’s no question that the current structure of market data is incredibly problematic. 2024 saw record-breaking spending allocated towards market data, and there’s plenty of new research that shows that the rising cost of this data is rapidly outpacing consumer budgets.
The reality is that it’s set up to be completely unsustainable. At the same time, institutions know that market data is the lifeblood of the financial industry. Without access to real-time, accurate data, it’s impossible for traders, institutions, and individual retailers to operate on a level playing field.
Today, market data—accurate, and real-time information regarding financial assets—is controlled by a select few centralized exchanges and data vendors. On top of that, they charge exorbitant fees to access it, pricing out the majority of participants.
If we want democratized access to financial truth, we need new infrastructure that can host the price of everything, bringing thousands of symbols to the masses in real time. Blockchain technology can make this possible—unlocking an entirely new market data economy where transparency and affordable access are the name of the game.
Crowdfund Insider: What is the risk that traders face if market data isn’t freely and easily accessible?
Mike Cahill: For traders, access to real-time information is crucial. Every trader knows that a few milliseconds could be the difference between capitalizing on a huge arbitrage opportunity—or losing it all. On top of that, traders who rely on stale price feeds are putting themselves at the risk of mispricing.
New or independent traders typically cannot afford access to premium data, which immediately puts them at a disadvantage. The fact of the matter is that if you don’t have the best data, someone else always will, meaning they’ll easily be able to front-run your trades, exploit price discrepancies, and arbitrage you out of a position—especially if the market is highly volatile.
Crowdfund Insider: What is the risk that institutions face if market data isn’t freely and easily accessible?
Mike Cahill: When it comes to institutions, market data fees are a massive line item. Millions of dollars are spent each year just so they can gain access to the most basic pricing information. Additionally, opaque pricing sources inhibit the ability to audit and verify how pricing decisions are made—something that causes compliance issues and undermines trust.
However, one of the most unforeseen issues associated with these costs is that, when access to fundamental data is highly restricted, innovation stalls. Institutions aren’t able to easily build or deploy new products, and it’s difficult for any kind of progress to be made if there isn’t a universal price layer to seamlessly plug into.
Crowdfund Insider: How can decentralized technology help rewrite the market data economy?
Mike Cahill: Blockchain and AI have become two of the biggest buzzwords in recent memory, and while many individuals perpetuate the narrative that decentralized finance will swallow our traditional financial system, I like to think about things in a different way: right now, both DeFi and TradFi have benefits to offer to each other, and I believe that both of these systems can work together to create a new global financial market—one that is seamless, open, accessible, and entirely based on merit.
For example, without institutional trust, DeFi can’t reach its full potential. The financial ecosystem that governs trillions of dollars across global markets is built on so much more than just code—it’s built on credibility, collaboration, and the ability to deliver reliable solutions at massive scale.
At the same time, institutions can no longer ignore the fact that traditional solutions to market data are no longer acceptable. They will have to look to new technologies to access real-time, accurate price data without the astronomical fees attached to it.
Today, new price layers like Pyth Network are working hand in hand with some of the world’s leading global institutions to publish thousands of symbols that can be accessed by anyone, anywhere. By making high-fidelity, real-time market data open, affordable, and available on-chain, Pyth is creating a new standard for financial information.
Pyth Network has partnered with hundreds of the world’s leading financial institutions to democratize their market data. Recently, one of the partnerships has been with Revolut, a global fintech focused on digital banking.
With over 51 million users across 200 countries, Revolut has transformed how individuals and businesses engage with financial services, and by partnering with Pyth, Revolut is bringing its market data directly on-chain so that anyone with an internet connection can easily access it—no Bloomberg Terminal required.
Revolut is effectively amplifying DeFi’s infrastructure with the same level of trust that has been at the core of each and every service they provide. Additionally, this partnership works to show how major institutions can make meaningful contributions to the DeFi ecosystem and continues to shape the future of finance by supporting innovation.
Crowdfund Insider: What does the future of finance look like?
Mike Cahill: The future of finance that I am committed to building is one where meritocracy rules. While technology has disrupted almost every single facet of our daily lives up until this point, the reality is that our financial system is still made up of broken infrastructure and outdated fundamentals.
When we talk about the “global financial system” that exists today, most people don’t realize that the global market is actually highly fragmented and largely inaccessible for the majority of the world. I imagine a world where someone in rural India can effortlessly trade Apple stock, and where an up-and-coming fintech startup can access the freshest market data without draining themselves entirely of their resources.
Blockchain, AI, and traditional institutions will come together to make this vision a reality. New technology will forge with the systems that are already in place today to unlock a new era of market data—one where everyone is empowered to access information that is currently siloed for a privileged few.