While there have been both public and private meetings held in every major financial center on the future of technology in the crypto-world, there are several core challenges that must be addressed – legal and regulatory framework as well as custody.
With regards to custody, the Japan-based global investment bank, Nomura, has unveiled a new joint venture that will establish a custody product. This of course is good news for investors as it is a step in the right direction with regards to delivering safety and security to investors – as of now there are few tools that banks can use. Also, Coinbase has announced that it will offer new products including custody solutions.
Banks have fallen behind with regards to providing solutions to the crypto-world.
However according to reports, JP Morgan was busy developing blockchain technology two years ago as it built out a list of products, including clearing and settling derivatives. Cross-boarder payments was also a result of JP Morgan`s effort.
From a regulatory point of view, there have been waves of articles from Japan, Switzerland, the US, South Korea and the EU. Both as individual countries and at the recent G20, central banks and finance officials have been working on a set of common rules and regulations that will be reported in July of 2018. Of course there have been meetings between banks, regulators and universities as well.
The 2018 and 2019 period will see accelerated product development, as well as legal and compliance framework build out to match a growing crypto and blockchain world.
Here at Classiarius, we are are looking at this March to June 2018 period as an inflection point for all things crypto – with building and destruction as important components. We see a washing out, if you will, of the weaker links in the system.
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Disclaimer: We do not provide investment advice or strategies, this article is not intended as such but only to provide you the reader with information. Please conduct your own research before any investment of any kind.