Throughout 2022, the crypto sector has shocked investors and those interested in entering the market, especially Wall Street and fintechs, with the recent FTX debacle leading to a loss of trust between Wall Street, fintechs and cryptocurrencies. Relationship building was damaged.
However, Wall Street said it remains committed to entering the cryptocurrency industry. Adam LevineVice President of Corporate Strategy fire block.
“In a nutshell, yes,” Levine said. Benzinga’s Global Fintech Deal Day on thursday. “Wall Street and financial institutions are really interested in what cryptocurrencies have to offer, seeing the future digitization and tokenization of financial services. That is where we are seeing a lot of activity right now.”
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Dating back to 2021, hedge funds and international clients traded $1.14 trillion worth of cryptocurrencies. Coinbase Global Co., Ltd. coinmore than doubled from $120 billion in 2020 to $355 billion in retail trading volume.
“These agencies have spent months, often a year or more, thinking about the right strategy. [to enter the space]said Levin. “There’s been a lot of commotion over the last few months, which is very disappointing, but it doesn’t derail their commitment.”
John Averystrategy and product leads FIS Global, As we head into 2023, fintech is most excited about the use cases in the cryptocurrency sector. Specifically three of them.
“The first is traditional financial systems, processes, [and] Convert operations into digital assets. ”
“Tokenizing real-world assets,” Avery said of the second use case. “Using his Web3 rails for traditional assets and as a new form of technology and infrastructure for processing and enhancing these assets.”
Regarding the third use case, “We are also seeing demand for stablecoins and other forms of value transfer use cases. [business-to-business] We handle scenarios,” said Avery. “These could be for domestic payments, cross-border payments, and corporate finance.”
Heading into 2023, Levine agreed that there would be a surge in stablecoins, especially on a global scale.
“If you look at some markets, the Brazilian central bank has been pretty active in the CBDC space as a leader.
Avery’s hope for 2023 is to see more collaboration between companies to help make crypto infrastructure a reality.
“To create Web3 use cases at scale, [and] This requires more than bilateral partnerships and cooperation. Industry needs to work with all parties on any given end-to-end transaction flow,” he said.
Photo: Gaspar Marquez in Benzinga