From cryptocurrency to cryptofinance: FTX, disintermediation and the US state

Muellerleile, Christopher

doi:10.1080/2833115x.2025.2589384

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From cryptocurrency to cryptofinance: FTX, disintermediation and the US state

Christopher Muellerleile

Finance and Space, Volume: 2, Issue: 1, Pages: 492 - 509

Swansea University Author: Christopher Muellerleile

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DOI (Published version): 10.1080/2833115x.2025.2589384

Abstract

During the first decade of cryptocurrencies (2008–2017) there were few connections established between crypto and the conventional finance sector, but in the US in 2025 the integration of these two sectors is proceeding at speed. This paper examines one part of this integration – the centralisation...

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Published in:	Finance and Space
ISSN:	2833-115X
Published:	Informa UK Limited 2025
Online Access:	Check full text
URI:	https://cronfa.swan.ac.uk/Record/cronfa70876

first_indexed	2025-11-11T11:34:55Z
last_indexed	2025-12-16T05:27:39Z
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spelling	2025-12-15T14:48:30.1438367 v2 70876 2025-11-11 From cryptocurrency to cryptofinance: FTX, disintermediation and the US state 62c8e47d6145081a464eadba0ff5c942 0000-0001-9685-6345 Christopher Muellerleile Christopher Muellerleile true false 2025-11-11 BGPS During the first decade of cryptocurrencies (2008–2017) there were few connections established between crypto and the conventional finance sector, but in the US in 2025 the integration of these two sectors is proceeding at speed. This paper examines one part of this integration – the centralisation of cryptocurrency trading inside of large, digital platformed exchanges, which is theorised as a shift from cryptocurrency to cryptofinance. Furthermore, the paper shows how this shift to cryptofinance has been aided by an emergent crypto-state nexus. The novel contribution of the paper is explaining how the US crypto markets have progressed from niche, relatively decentralised and blockchain-based, with little association with or regulation by nation-states, into what is now competition between FinTech-fuelled, digital platform firms that provide suites of financial services and instruments and collect fees for mediating access to the underlying blockchain markets. Empirically, the paper traces the rise of Sam Bankman-Fried’s firm, FTX, as it evolved from a small, California-based start-up running arbitrage trades in 2017 into one of the world’s largest crypto exchanges servicing over a million customers in 2022. In light of the FTX story, the paper analyses the geographical political economy of platformed cryptofinance as it struggles with both the incumbent financial sector and the US state. Journal Article Finance and Space 2 1 492 509 Informa UK Limited 2833-115X Cryptocurrency, blockchain, platform, decentralisation, Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Sam Bankman-Fried, FinTech 31 12 2025 2025-12-31 10.1080/2833115x.2025.2589384 COLLEGE NANME Biosciences Geography and Physics School COLLEGE CODE BGPS Swansea University SU Library paid the OA fee (TA Institutional Deal) The British Academy (grant reference SRGSRG2021\210813) and the Geography Department at Swansea University funded the research included in this paper. 2025-12-15T14:48:30.1438367 2025-11-11T11:27:51.8892135 Faculty of Science and Engineering School of Biosciences, Geography and Physics - Geography Christopher Muellerleile 0000-0001-9685-6345 1 70876__35825__9f03537e4317415f8d575087cfb10eae.pdf 70876.VOR.pdf 2025-12-15T14:46:29.1202767 Output 939517 application/pdf Version of Record true © 2025 The Author(s). This is an Open Access article distributed under the terms of the Creative Commons Attribution License. true eng http://creativecommons.org/licenses/by/4.0/
title	From cryptocurrency to cryptofinance: FTX, disintermediation and the US state
spellingShingle	From cryptocurrency to cryptofinance: FTX, disintermediation and the US state Christopher Muellerleile
title_short	From cryptocurrency to cryptofinance: FTX, disintermediation and the US state
title_full	From cryptocurrency to cryptofinance: FTX, disintermediation and the US state
title_fullStr	From cryptocurrency to cryptofinance: FTX, disintermediation and the US state
title_full_unstemmed	From cryptocurrency to cryptofinance: FTX, disintermediation and the US state
title_sort	From cryptocurrency to cryptofinance: FTX, disintermediation and the US state
author_id_str_mv	62c8e47d6145081a464eadba0ff5c942
author_id_fullname_str_mv	62c8e47d6145081a464eadba0ff5c942_***_Christopher Muellerleile
author	Christopher Muellerleile
author2	Christopher Muellerleile
format	Journal article
container_title	Finance and Space
container_volume	2
container_issue	1
container_start_page	492
publishDate	2025
institution	Swansea University
issn	2833-115X
doi_str_mv	10.1080/2833115x.2025.2589384
publisher	Informa UK Limited
college_str	Faculty of Science and Engineering
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description	During the first decade of cryptocurrencies (2008–2017) there were few connections established between crypto and the conventional finance sector, but in the US in 2025 the integration of these two sectors is proceeding at speed. This paper examines one part of this integration – the centralisation of cryptocurrency trading inside of large, digital platformed exchanges, which is theorised as a shift from cryptocurrency to cryptofinance. Furthermore, the paper shows how this shift to cryptofinance has been aided by an emergent crypto-state nexus. The novel contribution of the paper is explaining how the US crypto markets have progressed from niche, relatively decentralised and blockchain-based, with little association with or regulation by nation-states, into what is now competition between FinTech-fuelled, digital platform firms that provide suites of financial services and instruments and collect fees for mediating access to the underlying blockchain markets. Empirically, the paper traces the rise of Sam Bankman-Fried’s firm, FTX, as it evolved from a small, California-based start-up running arbitrage trades in 2017 into one of the world’s largest crypto exchanges servicing over a million customers in 2022. In light of the FTX story, the paper analyses the geographical political economy of platformed cryptofinance as it struggles with both the incumbent financial sector and the US state.
published_date	2025-12-31T05:33:51Z
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From cryptocurrency to cryptofinance: FTX, disintermediation and the US state

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