The forex market, often perceived as a simple currency exchange platform, is actually a complex synthetic dollar financing engine, according to a report by independent researcher Borja Neira. With a daily trading volume of $7.5 trillion, only 28% of forex transactions are spot exchanges, while 51% involve FX swaps, which function as dollar lending activities. The report suggests that the real potential of on-chain forex lies in transforming $80 trillion in off-balance-sheet derivative obligations into programmable smart contracts. Key opportunities include converting FX swaps into on-chain collateralized contracts, expanding PvP settlement to non-CLS currencies, and enhancing real-time risk visibility for treasurers and regulators. The report also notes that AMM models are unsuitable for institutional forex needs due to constraints like credit management and regulatory compliance.