Blockchain

KPMG: Cryptoassets a big deal but institutionalisation essential

Cryptoassets have potential. But in order to move to the next level, institutionalisation is needed, according to a new report from KPMG.

“Institutionalisation is the at-scale participation in the crypto market of banks, broker dealers, exchanges, payment providers, fintechs, and other entities in the global financial services ecosystem. We believe this is a necessary next step for crypto to create trust and scale,” it says.

“In 2017, we saw crypto competing against financial products for investment dollars across the traditional asset classes of stocks, bonds, commodities, and derivatives,” the report adds.

“The parabolic rise in market participants, coins, prices, and market capitalisation is still dwarfed by traditional asset markets, however, which are more than $300 trillion globally. Nevertheless, crypto continues to garner both good and bad press, and the debate between supporters and detractors is far from settled. In 2018, we are seeing a wave of new entrants in the market such as security token platforms, stablecoins, and even established financial services institutions that are launching crypto products and services. Cryptoassets are now impossible to ignore.”

Check out the full report here.

Scott Thompson

Scott has been working in technology and business journalism for nearly 20 years, with a focus on FinTech, retail, payments and disruptive technology. He has been Editor of such titles as FStech, Retail Systems and IBS Journal and also contributed to the likes of Retail Technology Innovation Hub, PaymentEye, bobsguide, Essential Retail, Open Banking Hub, TechHQ and Internet of Business.