Despite significant activity by major financial players in blockchain transactions, full crypto adoption in traditional finance remains a distant goal.
Regulatory Challenges for Institutional Crypto Adoption
The issue lies in confusing regulations and weak infrastructure. Key analysts emphasize the need for clear rules and collaboration between regulators and businesses. Naveen Mallela from JPMorgan highlights the necessity for greater clarity and cooperation to scale digital assets in traditional finance. Caroline Butler from BNY Mellon points out the need for a strong blockchain infrastructure to accelerate the integration of digital assets.
Public vs. Private Blockchains: Institutions' Stance
Public blockchains outperform private ones, according to Robert Mitchnick from BlackRock. Traditional finance requires regulatory clearance to use public blockchains. John Whelan from Banco Santander and Julian Sawyer from Zodia Custody note that standardization is crucial for integration.
Education and Collaboration: Key Barriers to Crypto Innovation
Educational gaps and working in silos hinder crypto industry's development, according to Mike O'Reilly of Fidelity Digital Assets. Investment in education and better understanding of blockchain's opportunities are needed. Nadine Chakar from DTCC emphasizes the importance of collaboration.
Financial institutions face challenges in regulation, standardization, and education for full crypto integration into traditional finance. International cooperation and investment in infrastructure and training are required.
