Twitter founder's new ambition! Square's decentralized exchange plan TBD, whitepaper released

Bitcoin enthusiast and CEO of Twitter and payment company Square, Jack Dorsey, revealed in August that Square's new division, TBD, is building a decentralized exchange (DEX) specifically for Bitcoin. Today (20), the tbDEX whitepaper was released, but it does not explicitly state whether the exchange will be built on the Bitcoin network.

Key Role: Participating Financial Institutions (PFIs)

It appears that in order to allow users to enter a certain degree of decentralized finance without being constrained by fiat and cryptocurrency divides, tbDEX has introduced a key role called Participating Financial Institutions (PFIs). These institutions are financial entities that provide liquidity to tbDEX and can be banks, tech companies, or other financial institutions. By utilizing PFIs to achieve seamless exchange on-chain and off-chain, it implies that tbDEX hopes to persuade large financial institutions such as banks to participate by holding crypto wallets, providing related financial services, and directly integrating with off-chain fiat networks during settlements through decentralized identities (DIDs) and verifiable credentials (VCs). However, whether this approach can gain support from advocates of complete anonymity and traditional banks remains to be seen.