At the FIX EMEA panel, ‘Digital Assets – Boom or Bust?’, BPX co-CEO Robert Barnes; Ownera chief operating officer Natasha Benson; R3 capital markets strategy lead Goncalo Lima; Zodia Markets co-founder Nick Philpott; and Talos head of business development, EMEA, Audris Siow discussed the challenges of digital asset adoption, including regulatory uncertainty.
The panel acknowledged the potential for digital assets to revolutionise the financial industry but brought attention to the lack of infrastructure as a hindrance, emphasising the need for regulatory clarity and interoperability. It was agreed that industry collaboration with regulators and policymakers was needed to drive regulatory change.
One panellist, in particular, said the lack of understanding and familiarity with digital assets was understandable if it was not within someone’s typical remit. They said digital assets are just assets – financial services and products – being put on the internet, in much the same way every other industry has done.
Additionally, tokenising money market funds, or bonds, or carbon credits, represents the second leg of the stool. However, it is still only a two-legged stool – one cannot cash out on the same timeframe. Until that transfer of value is addressed, digital asset adoption and use cases will be hindered, the panellist said, adding that regulators are being left behind. If the industry can address this pinch point, the panellist said, the reward will be substantial. The panellist cited Tether, a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner. That firm made $6 billion last year, more than Goldman Sachs.
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