Financial institutions are slowly embracing cryptocurrency.

 

At the European Blockchain Convention on Wednesday, a panel of industry experts revealed that mainstream financial institutions are increasingly embracing blockchain technology and cryptocurrencies, albeit cautiously.

The panelists were Anya Nova of GKS, Manuel Nordeste of Fidelity Digital Assets, Christopher Siedentopf of Uphold, Eliezer Ndinga of 21Shares, and Nikou Asgari, digital markets correspondent for the Financial Times.

Despite the volatility, Nordeste said the company has seen a rise in interest from established financial institutions.

The panelists did concur that one major obstacle to widespread adoption is the absence of clear regulations.

According to Nova, banks have been hesitant to accept cryptocurrencies because of security worries, but new innovations like multi-party computation methods are assisting in resolving these problems.

From the standpoint of the investor, Ndinga claimed that they are receiving more inquiries from institutions regarding the classification of cryptocurrencies, valuation models, and suggested portfolio allocations. He emphasized exchange-traded products (ETPs) as a simple means of exposure for conventional investors.

The panelists were generally upbeat about the steady rise in popular usage, even though it is currently primarily occurring behind closed doors. They identified decentralized finance and tokenization of real-world assets as potential tipping points.