Regulation, derivatives helping drive TradFi institutions into crypto, panellists say
Panellists stated that clearer regulation and derivatives are accelerating the convergence of traditional finance into crypto markets.Summary
Panellists at Consensus Hong Kong indicated that clearer regulation and technological advancements are driving traditional finance (TradFi) institutions toward crypto, particularly crypto derivatives. Jason Urban of Galaxy Digital emphasized that regulation provides necessary operating "rails." Developments like the 2024 approval of spot crypto ETFs in the U.S. and potential harmonization between the SEC and CFTC have shifted crypto from speculation to a portfolio staple. Executives highlighted that derivatives are key to unlocking trillions in institutional inflows, citing ICE Futures U.S.'s forthcoming USDC stablecoin futures and multitoken indexes as evidence of interest beyond Bitcoin. FalconX's Josh Lim stressed the importance of prime brokerages bridging liquidity between TradFi exchanges and decentralized finance (DeFi) pools. ARK Invest's Tom Staudt called the spot Bitcoin ETF debut a milestone but urged the industry to adopt a broad beta benchmark beyond just Bitcoin. Ultimately, panellists suggested that non-participation in decentralized finance is becoming a career risk for TradFi professionals.
(Source：CoinDesk)