2022 is coming to an end, and our staff at NewsBTC decided to launch this Crypto Holiday Special to provide some perspective on the crypto industry. We will talk with multiple guests to understand this year’s highs and lows for crypto.
In the spirit of Charles Dicken’s classic, “A Christmas Carol,” we’ll look into crypto from different angles, look at its possible trajectory for 2023 and find common ground amongst these different views of an industry that might support the future of finances.
Yesterday, we spoke with investment firm Blofin on their perspective on the past, present, and future of crypto. Today, we continue the series with David Shwed, former Global Head of Digital Assets Technology at BNY Mellon, the world’s largest custodian and securities services provider, and current COO at Halborn.
Shwed: “What changed was the reality that too good to be true yields are exactly that, too good to be true. The money needs to come from somewhere, and it turns out that it was coming from risk loans and other business practices that relied on the steady increase of the price of crypto (…).”
This major financial institution, along with some of the biggest banks in the U.S., Goldman Sachs, Morgan Stanley, J.P. Morgan, finally embraced cryptocurrencies in 2021 and 2022. Still, recent events in the industry might impact crypto and digital asset adoption for legacy financial institutions.
Shwed: “I haven’t seen any slowdown from TradFi when it comes to entering/expanding into the crypto markets.”
Traditional Finances (TradFi) and Crypto Finances, in their many forms (CeFi, DeFi, etc.), have been converging. Will the collapse of Three Arrows Capital (3AC) and FTX push these institutions away from crypto? What is the likeliest regulatory outlook for 2023? We asked this former BNY Mellon executive this and much more. This is what he told us:
Q: What’s the most significant difference for the crypto market today compared to Christmas 2021? Beyond the price of Bitcoin, Ethereum, and others, what changed from that moment of euphoria to today’s perpetual fear? Has there been a decline in adoption and liquidity? Are fundamentals still valid?
A: What changed was the reality that too good to be true yields are exactly that, too good to be true. The money needs to come from somewhere, and it turns out that it was coming from risk loans and other business practices that relied on the steady increase of the price of crypto. As the…
Click Here to Read the Full Original Article at NewsBTC…
