What Transpired from a Group of Crypto Executives Secret Meeting in January? Bloomberg Reports
Like any emerging industry, crypto has been forced to be very collaborative in its efforts to gain worldwide adoption and increase its share in the global financial market. For this to happen, digital assets and tokens will have to inevitably become commonplace in the global financial markets in the same way other financial assets are and in an effort to do this, it has been reported on April 25, 2019, that 20 of the biggest traders in the crypto market gathered in January to hold talks as to how this goal will be achieved.
This meeting was made possible by Standard Chartered executive Hoe Lon Leng, who organized the event. The meeting also saw powerful attendees such as representatives from Galaxy, Coinbase and Binance and took place at a resort in Singapore.
I would appear that the meeting yielded positive results as plans to a clearinghouse for future derivatives is apparently in the works. This clearinghouse would reduce trading costs and increase trading volumes for those involved and will reportedly be known as the Liquidity Offset network. This network is also to be launched as early as July after receiving regulation by the Singapore monetary authority.
Some details have been given by Simon Nursey, who was an attendee at the meeting.
“We see this as getting the crypto market into shape in order to absorb the entry of traditional finance firms. We are witnessing the emergence of a new asset class,”
he said via his website.
The meeting also focused on over-the-counter contracts rather than bitcoin futures, which are the usual choice for crypto exchanges. OTC contracts would likely bring more investment from institutional investors such as Wall Street according to Nursey. However, not everyone agrees with this as Eoin O’Shea has argued that crypto is now a pejorative because of the amount of fraud that goes on in the industry and that if it needs to go mainstream, it will need to shake off this reputation and that an accepted guide of trading conventions is not the solution.
A United Front
Regardless of the outcome of this decision, it is encouraging to see many players in the crypto industry come together to decide on a way to push crypto adoption. It needs to be understood that achieving adoption will not be a singular act by a singular firm but rather a united effort by various firms.
Should more meetings like this hold and more resolutions take place, we could very well see a brighter future and the mainstream adoption that everyone wants.