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How Network Effects in Finance Works: A Guide for the US Financial Market
['Reeves Birner', 'Angela Scott-Briggs']
TechBullion
The stakes keep rising as the connective tissue grows; Mordor Intelligence values the global embedded finance market, finance distributed through other companies’ networks, at 125.95 billion dollars in 2025, projecting 375.68 billion dollars by 2030.
Honor-all-cards requirements, dispute procedures, data standards, and settlement guarantees are what participants actually buy when they join a financial network.
Critical mass: the cold start and its escapesBelow a density threshold, a financial network is worthless; above it, self-sustaining.
Whether multihoming is easy is therefore the single best predictor of how concentrated a financial network market becomes.
Reading a financial network like an analystFour questions reveal most of the structure.