PANEL - Digital Assets from Fringe to Future: The Importance of Institutional Grade Infrastructure
Channel: Beryl Elites
Date: 2022-07-14

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PANEL - "Digital Assets from Fringe to Future: How crypto can learn from traditional markets and vice versa. The importance of institutional grade infrastructure. What trends we are seing. Regulation & the need for regulatory frameworks."

PANELISTS: ❖ Moderator ANTHONY TUTHS, Tax Principal, KPMG ❖ JENNA WRIGHT, Managing Director, LMAX Digital ❖ CHAD BERNER, Co-head of Global Electronic Trading, Galaxy Digital ❖ SAM DIEDRICH, Head of Absolute Return and Credit, Partners Capital ❖ BORIS BOHRER-BILOWITZKI, Chief Revenue Officer, Copper

Anthony Tuths, KPMG, introductory remarks
at 0:35,
“How do we institutionalize the crypto markets, what are the things from traditional markets that we need to bring into the digital asset world, what's the institutional grade infrastructure that's going to be required in order to spur on institutional adoption  .. At KPMG our clients are of institutional size, we have pension funds, sovereign wealth funds, some of the largest allocators in the world and when I speak to them about what they're thinking about when they're exploring coming into the digital asset world, it's always safety security, what's the infrastructure, what's the regulation around us - so those are the questions that that they're posing before they step into this space.” 

Jenna Wright, LMAX Digital
at 1:47,
"LMAX Group has been operating foreign exchange around the globe for the last 12 years now and in 2018 we moved into offering spot crypto as an alternative asset class for our clients. Our clients typically would be banks and large high-frequency trading firms. In 2017, HFTs were really knocking on our doors and asking us to do something like we do in foreign exchange for the crypto market. So ultimately they were market making on a ton of retail crypto exchanges but didn't really have a venue where they could offset some of their risk, trade with like-minded participants. So that's how our crypto offering really came about, how can we service our existing clients on the crypto side of things. So we launched LMAX Digital to do exactly that. It has been pretty successful. We only trade spot crypto today moving into futures later this year .. where we've seen a big difference in the last four years it has really been the traction from the banks. So given that a lot of our clients trading for an exchange with us will be banks they kind of run away from us in 2018 when we showed them what we were doing in the crypto space. If you fast forward four years to where we are today, they're all now knocking on the door. So still issues around regulation preventing them from physically touching crypto but absolutely readying themselves to be able to trade this asset class."

Chad Berner, Galaxy Digital
at 3:55,
Galaxy Digital is  one of the biggest digital asset banks .. We are an OTC over-the-counter market-maker and we have lines across electronic trading, derivatives, manual spot trading. My background is in traditional foreign exchange and seeing the evolution from foreign exchange into crypto, in particular the topic of exchange trading versus OTC trading has been really interesting. I guess in terms of the topic of institutional adoption it's been fascinating the amount of conversation I've had with clients or vendors who I spoke to every day in foreign exchange and it was the same faces that are now in crypto.

Sam Diedrich, Partners Capital
at 6:53,
"We're an outsourced CIO firm. We manage capital on behalf of a blended mix of large family offices and endowments foundations and other institutional investors and we invest across all asset classes .. We tend to emphasize alternative active management as a source of excess returns and traditionally we have had a lot of success focusing on strategies where excess returns are skill based .. There's also a place in our portfolio for I would say new niche capacity constrained complex markets and opportunities. Crypto clearly falls in that bucket, in my mind."

Boris Bohrer-Bilowitzki, Copper
at 9:55,
We started four and a half years ago, four of us, in a cool flat with a whiteboard trying to figure out how to rewire financial services .. at  that time, end of ’17, there was nothing around on the custody side .. What we're doing, we provide the shovels and picks .. the custodial layer .. so we created a product called World Garden at that time'18, so funds can travel freely within jointly control with the custodian and then it kind of evolved from there."


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