Interesting thought piece in the Institutional Investor that highlights while the price of crypto assets has bounced around, technological and infrastructure development has continued apace — akin to the business activity at Amazon after the internet bubble popped.
Institutions that want to dip their little toe in the water are paying attention to an evolving infrastructure — one that, although under the radar, has been increasingly suitable for investment. For one, risk managers point to the necessity of mitigating operational risk with institutional-quality trading counterparties, custody, and regulation. At each of these potential roadblocks, slow and steady progress has occurred. On trading, credible market exchanges, including Intercontinental Exchange’s Bakkt and the Chicago Mercantile Exchange, now provide a home for Bitcoin futures, and Novogratz’s Galaxy Digital, popular platform Coinbase, and a host of others are fulfilling the traditional role of banking for crypto assets and blockchain projects.