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ecosystem is being incredibly integrated and there ' s a danger that the whole industry is being addressed as one . I think we need to be very careful when we look at cryptocurrency as an asset class - yes it is an asset class and there are technical means by which we can address the markets of tomorrow , but that ' s separate , that ’ s an enterprise technology venture rather than the market structure aspect of it . We need to be clear on what portion of the ecosystem we are talking about : trading versus custody versus collateral management , data , research - they are all different . All of these pieces need to fall into place and at the end , we will see an ecosystem that is much stricter in terms of the boundaries of its business models .
Laurie : What role can incumbent financial institutions play in supporting and developing industry ? Taylor : It ’ s indisputable at this point , based on recent events , the direction of travel , and every individual within the ecosystem that I ' ve spoken to is working incredibly hard at trying to figure out : OK how do we reorganise and re-engineer the trade flow that ' s going to be using DLT technology , it ' s going to be using solutions like ClearLoop but trading a derivative . You ' re no longer in a position where you can just put funds in offshore exchanges where the majority of options trade . That has to be reworked and will be reworked , and the industry will be better for it .
Sabrina : When you look at the collection of actors that we have here around the room it ' s quite representative of how you build an ecosystem today . That
Taylor : And this will accelerate what Abeetha ’ s team is working on . You ’ ll be able to leverage this infrastructure across all tokenised assets . Previously , there was so much price volatility when it came to profits that no one was interested in taking the time to build anything . It was like OK , we ’ ve got great liquidity in these offshore places , we ’ ll figure out how to access that . Now it ’ s a different paradigm , which will bleed into an infrastructure that will increase efficiency across financial services by an order of magnitude .
Clara : There are two components when it comes to institutional adoption . We have the infrastructure side but then we also need to look at the investor perspective . What do they need to change about what they are doing ? Recent market events have shown the importance of balance sheet management . How do you understand the risk profile of every crypto-
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