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to see some momentum . Now we ’ ve got all the grown-ups in the room , how can we work together , how can we now build something truly institutional ?
Laurie : Our discussion has centred around some key areas – reputation , regulation , risk management and efficiencies of capital . What else is important to highlight ? Taylor : It ’ s important to stress that recent events have nothing to do with the underlying technology , or with crypto as an asset class . It has to do with human behaviour . It ’ s getting a lot of press , but it ’ s important to recognise that distinction . It ’ s human beings who decided to make those decisions , and a bad outcome was the result . Crypto as an asset class remains unchanged .
Laurie : Bad apples , not bad assets . What would you like to see in 2023 ? Jenna : Same as the last few years . Regulation and credit intermediation . We will struggle to grow our spot offering without it , because until the regulation comes in , banks can ’ t trade physical crypto . Even with futures offerings , all roads lead back to cash , and everyone will want to trade the underlying product in the end . I think we ’ ll see frameworks start to appear from next year .
Taylor : We ’ d like to see liquidity coming onshore , in a variety of different products . That would be a large win for a wide variety of market participants . In 2023 , I think the timeline of adoption will speed up in certain cases , while in other cases it might take longer than it otherwise would have . But I ’ m excited .
Clara : What we ’ re looking for in the future when it comes to overall risk management is increased data and transparency standards for service providers so we can monitor and collect that information .
Abeetha : I ’ d like to see greater institutional adoption , and I think that will be driven by engaging with the likes of us and our competitors . Understanding the technology , understanding the asset class . I think there are still a lot of institutional players who are not yet fully engaged in the product itself , and there is a huge amount of potential there . What will drive that adoption is the push from banks , from FMIs and from regulators , making it a safer environment to play in . We are going to see a convergence of financial market structures and new players coming into this space that is going to make it more efficient .
Sabrina : Regulatory clarity but also regulatory consistency . When we are looking at the markets we know and love , there is one element rarely talked about , which is the concept of equivalence . This is what really allows 24 / 7 markets to function .
I am very optimistic for 2023 , I think it will be a coming of age , and a very big year for digital assets .
MODERATOR : Laurie McAughtry , managing editor , The TRADE
PANELISTS : Taylor Cable , managing director , Cowen Digital Europe
Abeetha Pitigala , vicepresident of digital assets , Goldman Sachs
Jenna Wright , managing director , LMAX Digital
Sabrina Wilson , COO , Copper . co
Clara Medalie , director of research , Kaiko
32 // TheTRADE // Q4 2022