Institutional Investor Interest is Growing in the Crypto Market But What About Banking Integrations
We are entering 2019 and several analysts are already thinking about what will happen in 2019. Enthusiasts are very excited about the possibility of experiencing a bull market after experiencing a very poor price performance in 2018.
According to a top executive at PricewaterhouseCoopers (PwC) there will be more institutions entering the market this year. Henri Arslanian, who works at PwC China and Hong Kong, claims that 2019 will bring institutions to the crypto space.
In 2018 there was a lot of uncertainty regarding regulations and the responsibilities of each of the companies investing in the crypto market. The same happened with individuals that did not know which were their rights and obligations. Although this uncertainty keeps, more banks will enter the space as soon as this year.
In a recent post, he gave 8 fintech and crypto predictions for 2019. The first one is related to the institutionalization of the crypto ecosystem while the second one is more regulations. The third is related to Initial Coin Offerings (ICOs).
He claims that ICOs will be kicked out from the market and that security and stable tokens are going to grow. During 2017 and 2018, several Initial Coin Offerings have been launched to the market. However, some of them were totally scam or fraudulent businesses that wanted to just gather some fast funds and run away. Since regulations were not clear, it was difficult to control them and easy for them to cheat investors. With more regulations and new security and stable tokens launched, the market could see new and better companies investing in the space.
8 #fintech & #Crypto Predictions for 2019!
1. Institutionalization of the Crypto Ecosystem: The Toddler Growing Up
2. More Crypto Regulation, Please!
3. Bye Bye ICOs – Hello Security and Stable Tokens
— Henri Arslanian (@HenriArslanian) January 4, 2019
He mentioned that there could be a surge in virtual banks driving innovation in 2019 as well. There are banks and institutions that are also entering the market. We can mention Fidelity Investments that is trying to offer services to financial institutions. JP Morgan has already developed a permissioned blockchain. Santander and BBVA are also working with different companies in the crypto space such as Ripple.
Arslanian commented during a conversation with Bloomberg:
“In 2018 we saw a lot of the big banks enter the space and in 2019 I expect many more to enter the space as well, in different ways, some of them may decide to launch their own solutions like Fidelity did here in the US by setting up a new company.”
He went on saying that others could also partner with other cryptocurrency firms such as Nomura did with Ledger or Goldman did with BitGo and Circle in the past.
All these banks, Goldman Sachs, Fidelity and Nomura have been trying to better understand this technology and have invested in it. However, they will still be focused on regulations and how to be compliant with all the necessary requirements.
On Twitter, Arslanian mentioned three more trends for 2019. He says that virtual banks and crypto companies will lead the innovation efforts this year. Moreover, regulations will help innovation grow and consumers want to have more privacy on what they do.