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Blockchain Industry Review
Security, complianc access to liquidity: WHO’S GOOD AT KEEPING SECRETS IN CRYPTO MARKETS? By Alex Batlin, Founder & CEO of Trustology
The market cap of crypto assets markets is growing fast—over $2 trillion. Institutional interest is rising, and players view the industry as an opportunity for growth compared to traditional financial markets. Crypto assets are based on a fundamentally different technology (blockchain) as compared to traditional financial rails. As such, brand new infrastructure is required to safeguard and administer traded crypto assets. In addition, new decentralised financial services,
known as DeFi, are on the rise, offering new trading, lending and hedging venues as well as passive yield opportunities. Fund managers are increasingly interested in the benefits that crypto could offer their portfolios given its price volatility as an asset class which can create opportunity in the market for arbitrage plays, high-frequency trading, and hedging /speculating with leverage to support maximising earnings potential. However, custodying and
safeguarding assets much in the same way traditional assets are is still giving many institutional investors pause. Institutions have a need for security, compliance, transparency, governance and speed without compromising one for the other to comfortably use and transact with crypto. Remarkable progress has been made in solving the pain points of digital asset custody in the blockchain space and here’s what you need to know.
