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Survey respondent profile – A total of 256 decision-makers from buy-side firms operating around the world were surveyed. Investors surveyed came from different segments within the https://www.xcritical.com/ buy-side and varied in asset size. Discover how EY insights and services are helping to reframe the future of your industry.
Regulated and Trusted Digital Asset Brokerage
For example, banks can provide services governed by MiCAR such as custody of unbacked digital assets via a simpler regulatory notification. The cryptocurrency & digital asset sector has long been dominated by retail investors. However, with more and more institutions trade digital asset entering the market, the industry inches toward full adoption. With the buildout of tools that enable visibility and compliance, the institutional investment landscape for digital assets can reach new heights. Forty-seven percent of hedge funds and institutional asset managers are interested in tokenizing their own assets. Primary rationale for tokenizing assets include access to new investors and capital, and increased liquidity (53% and 47% of respondents, respectively).
- KPMG professionals are focused on building trusted relationships and delivering quality output through project teams that can support you from anywhere in the world, whatever your investment activity.
- AIMA’s fund manager members collectively manage more than US$2.5 trillion in hedge fund and private credit assets.
- However, with publication only expected in H2 2025, the plan offers little immediate relief for firms navigating multiple regulatory priorities and reforms.
- Our clients benefit from unparalleled market liquidity, guaranteed price quotes, and complete privacy, with each trade executed directly against the counterparty.
- That is why we offer both RFS (Request for Stream) and RFQ (Request for Quote) pricing methods to accommodate all types of professional traders.
- Retail and institutional investors alike are already harnessing the potential for digital assets to revolutionise traditional finance, with practices such as tokenization.
Weekend trading as a rapidly growing market opportunity
Deloitte LLP is the United Kingdom affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). Please see About Deloitte to learn more about our global network of member firms. A wave of compliance deadlines, intensifying into 2026–2028, is set to create a more costly and competitive operating environment for the payments and digital assets industries. Over one-third of our panelists (35.19%) believe all crypto exchanges will be Cryptocurrency wallet regulated as traditional financial institutions by 2030.
AIMA supports DFSA’s proposed reforms to Client Assets regime, seeks further clarifications
Our dedicated Digital Asset Team spans across many geographies and has in-depth market and value chain experience to ensure the best support for your Digital Asset strategy and implementation. “Together, we’ll create a future where individuals and businesses large and small use onchain payments to make their lives better every day,” Jesse Pollak, head of Base and Coinbase Wallet, said at the time. Open to legal residents of the 50 United States and the District of Columbia, 18 years or older. The value of Bitcoin is subject to market fluctuations and may increase or decrease, including the risk of losing all value. As the name implies, they are meant to hold a stable value, relative to another asset or financial instrument they are linked to, such as fiat currencies like the US Dollar, or commodities such as gold.
Additionally, EU firms may capitalise on opportunities presented by the Digital Markets Act, including opening access to Near-Field Communication (NFC) technology on mobile devices provided by certain BigTechs, to create new digital wallets. These wallets could offer consumers alternative options for in-store and online payments, competing with BigTechs, and potentially incorporate open banking-enabled Account-to-Account (A2A) payments. VALR, Africa’s largest digital asset trading platform by volume, for instance, has emerged as a forerunner in this space. Having secured $55 million in equity funding from industry giants like Pantera Capital and Coinbase Ventures, the platform has established itself as a leading force within the global crypto fray. However, the landscape of institutional investment in digital assets is evolving rapidly, and these challenges are being addressed as the industry matures.
By focusing on these areas, you can create a digital asset trading platform that not only meets the needs of today’s traders but also stands out in a competitive landscape. Larger players may pursue banking licences to unlock revenues, although the costs and lengthy process are likely prohibitive for smaller firms. Alternatively, regulated firms could diversify their offerings, adding services such as credit, digital assets, or Buy Now Pay Later to boost revenues.
In an industry known for its volatility, 2022 was a banner year for digital assets¹ — with numerous headlines, TV talk segments and podcasts devoted to the developments. On one hand, we witnessed a complete shift in the landscape of players, including the collapse of some of the most well-known firms, as well as a historic erosion of value and an increase in regulatory enforcement actions. In addition, many TradFi organizations continued forward in their build-out of digital asset offerings for their retail and institutional clients. BitGo is the leading infrastructure provider of digital asset solutions, offering custody, wallets, staking, trading, financing, and settlement out of regulated cold storage. Founded in 2013, BitGo is the first digital asset company to focus exclusively on serving institutional clients. BitGo is dedicated to advancing a digital financial services economy that is borderless and accessible 24/7.
In late 2023, India’s Financial Intelligence Unit told a number of digital asset exchanges that they were in breach of the country’s anti-money laundering laws, and subsequently blocked their URLs. “A lot of regulators in Asia recognize that there is a lot of value to be realized by embracing digital assets and cryptocurrencies. Singapore and Hong Kong are both good examples of jurisdictions which have introduced progressive regulations. Both markets are exploring the use of blockchain, digital assets, and tokenization—highlighted by projects such as Project Orchid and Project Ensemble, ” said Richard Swainston, Custody Sales Director at Ripple.
Despite the growing interest in the crypto sector, there are still several factors holding back institutional investment. These include a lack of market liquidity, concerns about market manipulation, and a lack of regulatory clarity. OSL’s simple and tailored approach compliantly navigates international clients through the evolving digital assets environment. Institutions interested in tokenizing assets are most interested in tokenizing public funds, private funds and real estate funds. Investors overwhelmingly believe in the long-term value of blockchain and/or digital assets despite recent market events.
Protect digital assets from cyber threats with our multi-layered security approach. Digital assets have the capability of being transacted across a global scale and reaching financial systems for people in underbanked or unbanked regions. No longer requiring anything other than an internet connection, many now have access to economic activity that would previously have been out of reach, making a huge contribution to financial inclusion. By end-2025, greater clarity on UK-EU divergence will reveal the long-term costs of offering products in each jurisdiction and enable firms to assess the feasibility of unified risk and compliance systems, policies, and procedures, versus local tailoring. We polled 56 specialists in the fintech industry to get their opinion on what the future looks like for centralized crypto exchanges and what the demise of FTX means for the crypto industry. News continues to arrive about large institutional investors entering the cryptocurrency field.
Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Institutional investors are interested in investing in tokenized private funds and securities (e.g., bonds, stocks) the most, citing access to new asset types, increased liquidity, and increased transparency as primary drivers for their interest. At OSL, we recognize the importance of a smooth and efficient trading experience. That is why our REST API offers a comprehensive range of endpoints that enable you to integrate your systems with ours seamlessly. Whether you need to manage orders, access market data, or transfer funds, our API technology has got you covered, providing full exchange functionality at your fingertips.
And do it with a user-friendly platform with robust security measures, including hot wallet insurance and two-factor authentication. Additionally, Gemini provides access to a wide range of cryptocurrencies, making it a versatile choice for traders and investors nationwide. We evaluate security, fees, user experience, available cryptocurrencies and other criteria across more than 40 providers to find the best crypto exchanges and trading platforms for buying and selling crypto.
This would mean more pragmatic financial regulations that serve the digital age even better, in fact encouraging more innovation in the sector. As with the rest of the world, digital asset trading is becoming increasingly popular in parts of Asia, as users seek out better returns amid the challenging market conditions elsewhere. Regulatory deadlines loom large, demanding significant skilled staff and financial resources. But firms should not lose sight of the new business model opportunities posed by new forms of money and payments. While draft details will emerge in 2025, final rules are not expected until 2026.
This is because the exchange controls the private key to your wallet, which means you don’t have total control of your funds. And with exchanges sometimes falling victim to hackers, there is some degree of risk involved with leaving the private keys to your crypto in the hands of a centralized exchange. Finder’s investments experts reviewed over 40 cryptocurrency platforms available to narrow down the best exchanges in the USA for trading and investing in crypto. Only platforms registered with the Financial Crimes Enforcement Network operating in the US were considered part of the final methodology.
Timing the market vs. time in the market, which is better when investing in cryptocurrency? Asset-backed tokens are tokens pegged to other assets, such as gold, equities, or oil. The tokens allow the fractionalisation of assets into smaller units, which makes it affordable for retail investors to own a piece of an expensive or illiquid asset.
