“Bringing the Foreign Exchange Market On-chain: A Widely Misunderstood Trillion-Dollar Market” (by Spinach Talks Web3) points out that in the $7.5 trillion/day forex market, actual “currency exchange” only accounts for 28%, while the core is a global dollar funding network using FX swaps as the vehicle (about 51%), and more than $80 trillion in off-balance-sheet “hidden debt” is concealed within. There is a structural mismatch between AMMs and institutional needs, and retail forex scenarios that AMMs can support may represent less than 1–2%. Instead of building “on-chain forex AMMs,” the focus should be on permissioned chains and compliant infrastructure, addressing pain points in the dollar funding and settlement layers. Read the full article: