Fun

News Feed - 2023-09-29 01:09:00

Cointelegraph Innovation Circle8 hours agoTradFi: 11 things to do when considering adding digital assetsDigital assets can present expansive and valuable opportunities for a TradFi institution that’s prepared to lay the necessary foundation.225 Total views2 Total sharesListen to article 0:00Innovation CircleJoin us on social networksAs digital asset options continue to gain attention and acceptance from investors, traditional financial institutions may be considering adding digital assets to their offerings and/or portfolios. As with any other industry, “standing still” isn’t an option in the financial sector, and tapping into the potential of digital assets can help TradFi organizations tap into an enthusiastic and growing new customer base. Further, adding digital assets can diversify a traditional portfolio, offering a hedge against market downturns.


However, any upside achieved from being viewed as an innovative early adopter can quickly be erased if a TradFi institution isn’t thoroughly prepared for the unique opportunities, challenges and risks that come with digital assets. Below, 11 members of Cointelegraph Innovation Circle share essential things any TradFi organization must be prepared to do if it’s considering digital assets and why these steps shouldn’t be skipped. Focus on robust risk management


One essential thing to remember is the need for robust risk management. Given the high volatility and unique regulatory environment of digital assets, TradFi institutions should have comprehensive risk assessment and management strategies in place. This includes understanding the technology behind these assets, their market behavior and potential legal implications. –Tomer Warschauer Nuni,Kryptomon Understand how verification and approval works on the blockchain


With the possible exception of real world assets — like expensive watches, jewelry and other items that are attached to digital ownership tokens to verify ownership and its transfer — the concept of verification and approval is different with blockchains. In terms of record-keeping, the blockchain itself is the constantly updated and verified record. Every transaction is checked and recorded on the chain. –Zain Jaffer,Zain Ventures Implement thorough cybersecurity protocols


Custody is an important factor to consider. The events of the last year prove that “not your keys, not your coins” is as relevant as ever. Since insured institutional crypto custodians can be costly (and defeat the purpose of the aforementioned mantra), an institution needs to do its due diligence on its own staff and have robust cybersecurity protocols in place, including firewalls, two-factor authentication, multisignature, phishing training and so on. –Timothy Enneking,Digital Capital Management Adapt to crypto norms and principles


Digital assets must address “cultural liquidity” for TradFi institutions. It’s essential to understand and follow the crypto community’s principles, practices and expectations. Decentralization and transparency underpin digital asset markets. To maximize digital asset potential, institutions must adapt to these norms, which may differ greatly from those of traditional finance. –Arvin Khamseh,SOLDOUT NFTs Create accessible educational content


Education is the name of the game when it comes to digital assets. Much of a TradFi institution’s audience will likely be skeptical of or unfamiliar with digital assets like cryptocurrency. Beginner-friendly promotions, educational blogs, onsite explainers and videos couched in language the audience understands can make a world of difference. –Sheraz Ahmed,STORM Partners Choose partners and technology carefully


For traditional businesses seeking to extend their services into the digital economy, it’s worth considering that, unlike people, not all entry points to the ecosystem are created equal. First-time retailers want a guide who knows the terrain and has time-tested experience delivering trusted solutions. As banks and crypto continue to co-evolve, partners and technology should be chosen carefully. –Oleksandr Lutskevych,CEX.IO Keep capital preservation top of mind


The most important thing traditional finance institutions should keep in mind when approaching digital assets is the concept of capital preservation, or ensuring that there are no losses resulting from avoidable situations. Even if a manager wants to invest in risky assets like crypto, they should do it with profits that were generated earlier, not with original capital. –Abhishek Singh,Acknoledger Clearly identify the asset class(es) you’re working with


Institutions should be steadfast in clearly identifying the asset classes they are working with, as “digital asset” can be vague. As various digital assets shape this emerging market, it will be paramount to educate your audience as well. There are many digital asset sectors that need to be understood, such as real world assets, cryptocurrencies, tokens, nonfungible tokens and many more. –Megan Nyvold,BingX Be prepared for volatility


Digital assets, especially cryptocurrencies, are known for their price volatility. TradFi institutions interested in adding digital assets to their offerings should be prepared for the inherent risks associated with this volatility, which can lead to significant fluctuations in asset values. Rigorous risk management practices are essential. –Anthony Georgiades,Pastel Network Consider hybrid portfolios


TradFi institutions should consider hybrid portfolios. When integrating digital assets, they should blend traditional and emerging holdings. This caters to evolving client preferences, requires rigorous risk assessment and compliance and leverages institutional expertise. This approach empowers institutions to tap into the potential of digital assets while meeting modern investment demands. –Vinita Rathi,Systango Prioritize compliance


Web3 regulations around the world are evolving far more rapidly than their counterparts in traditional finance. TradFi institutions should work with blockchain compliance experts to not just stay on top of current legal requirements, but also to prepare for any upcoming changes. –Wolfgang Rückerl,ENT Technologies AG


This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.

News Feed

Paypal Launches Business Unit Dedicated To Cryptocurrency
Paypal Launches Business Unit Dedicated To Cryptocurrency Paypal is launching a new business unit dedicated to cryptocurrency services, the company chief executi
British Auction House Christie’s to Present Full Set of NFT Curio Cards on October 1
British Auction House Christie"s to Present Full Set of NFT Curio Cards on October 1 The British auction house Christie’s has been immersed in the non-fungible token (NFT) a
Venezuelans Can Now Use Bitcoin to Pay for Goods at 20,000 PoS Terminals
Venezuelans Can Now Use Bitcoin to Pay for Goods at 20,000 PoS TerminalsVenezuelans will now be able to use bitcoin to pay for goods and services at more than 20,000 point-of-sale (
Bitcoin Breaks ATH Pushing Back Into Price Discovery – BTC To $130K?
Este artículo también está disponible en español. Bitcoin has shattered its all-time high, reaching $106,500 just a few hours ago, setting the stage for an even bigger mo
Over $182 Million Wiped Out As Bitcoin Price Breaks $64,000 And Sends Bears To The Gallows
Este artículo también está disponible en español. In a dramatic turn of events, the Bitcoin price has breached the $64,000 threshold again after a 7.7% increase from a lo
ETH 2.0 Contract Surpasses 9 Million Ethereum Worth $28 Billion
ETH 2.0 Contract Surpasses 9 Million Ethereum Worth $28 Billion The number of ether locked in the Ethereum 2.0 contract has exceeded 9 million ethereum or more than $28 billion usi
Crypto bull run ignites surge in job listings, salary increases
Robert D. Knight10 hours agoCrypto bull run ignites surge in job listings, salary increasesJobseekers in crypto currently have a wealth of options as firms seek out fresh talent to help fuel their growth.972 Total views6
Major Producer Nornickel Issues Its First Metal Contract-Backed Digital Coins
Major Producer Nornickel Issues Its First Metal Contract-Backed Digital Coins One of the world’s biggest palladium producers, based in Russia, announced th
Robert Kiyosaki Says End of Fake Money Is Here — Shares 3 Lessons to Help Investors Amid Market Crashes
Robert Kiyosaki Says End of Fake Money Is Here — Shares 3 Lessons to Help Investors Amid Market Crashes After predicting the biggest crash in world history, Robert Kiyosaki, the
Nigerian Experts: CBDC Still Unattractive to Users Despite Claim of ‘Excellent’ Adoption Rate
Nigerian Experts: CBDC Still Unattractive to Users Despite Claim of "Excellent" Adoption Rate Nigerian blockchain and cryptocurrency experts have suggested that many prospective us
Chinese Kennel Owner Caught Stealing Electricity to Power Underground Bitcoin Mining Farm
Chinese Kennel Owner Caught Stealing Electricity to Power Underground Bitcoin Mining FarmThe largest oil field in the People’s Republic of China has been a target for individu
Poll Suggests ECB May Wait Until Q4 to Raise Rates, Several Banks Expect a Series of Fed Rate Hikes This Year
Poll Suggests ECB May Wait Until Q4 to Raise Rates, Several Banks Expect a Series of Fed Rate Hikes This Year A recently published Reuters poll suggests the European Central Bank (