Backpack Founder: Once Wall Street Is API-Enabled, Small Teams Can Build the Next Generation of Financial Applications

TechFlow news: On November 5, Backpack founder and CEO Armani Ferrante said on the podcast Rollup that once the entire Wall Street becomes an API callable by developers, programmable finance will spark extensive experimentation, giving small teams the opportunity to build the next generation of financial applications.

Ferrante said that launching a brokerage in the U.S. was once a Herculean challenge, and it was difficult for five people in a dorm room to create the next Robinhood; once Wall Street is API-enabled, the barriers will drop significantly.

He gave an example, noting that some have already tried to split SpaceX equity into exposure to revenue streams such as Starlink or space data centers, allowing individuals to easily assemble custom ETFs. He also mentioned that traditional ETFs such as SPY charge about 7 to 9 basis points on assets under management; if rebuilt on-chain and automated with smart contracts, fees could be reduced to 1 basis point or even zero.

Source: TechFlow