What are the main blocks to mass adoption?
There is a whole host of reasons.
⭕Compliance and regulatory hurdles are among the reasons, but these are being addressed already.
▶️Several global regulators, including the US, approved the inclusion of digital assets in institutional portfolios and retirement accounts (IRA/401k). European Parliament provisionally agreed upon The Markets in Crypto Assets (MiCA) regulation, which will protect investors and preserve financial stability while allowing for greater innovation in the crypto asset sector. It will focus on 3 categories of assets: Utility tokens, Asset-referenced tokens, and e-money tokens.
⭕Risk assessment, Price Volatility and Real-Time Valuation are among other issues.
Even If your strategy allows adding multiple assets, other factors still need to be considered from a front, middle and back office perspective.
There still needs to be more off-the-shelf infrastructure to support trading and record-keeping.
In that sense, partnerships with the newest digital trading platforms, custodians, and asset servicers are critical.
Yes, it will be painful and uncomfortable, but you will be a front-runner with other market players on the buy-side who are essentially there creating a new asset class.
One of the existing examples is Societe Generale – FORGE that services asset management clients in managing digital-native financial products registered on the blockchain.
⭕However, there are still more Questions to be Answered. Especially on how do you integrate blockchain-based order management and trade execution with existing Portfolio/Order/Execution Management platforms.
Asset servicing must be able to “interconnect and interoperate” with digital trading platforms for holistic fund administration, accounting, custody, and other services.
The below progress achieved by QPQ and Greg Chew is increasingly crucial in consideration of institutional investors’ adoption of digital assets. QPQ’s development, together with other FinTech Solutions providers, brings us closer every day to new market reality when the buy-side and Fund Managers will be able to have exposure to digital assets using blockchain technology and seamlessly include them into their portfolios.