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- A report indicates that despite the decline in the cryptocurrency market in 2022, institutional interest in digital assets remains strong.
- According to a survey conducted by BNY Mellon, 91% of custodian bank clients are interested in investing in blockchain-based tokenized products and 86% adopt a “buy and hold” strategy.
- This suggests that institutional players view the cryptocurrency market as a long-term investment opportunity.
Additionally, 88% of respondents stated that the market decline did not change their plans to invest in the digital assets space. The head of digital assets at BNY Mellon, Michael Demissie, believes that the digital asset industry is here to stay as institutional investors continue to show strong interest in crypto.
Despite the growing interest in digital assets among institutional investors, Demissie acknowledges that there is still a need for more clarity and guidance from regulators. Without clear regulations, the digital asset industry may face challenges in terms of growth and adoption. Thus, there is a need for work to be done in Washington DC to provide regulatory clarity and enable industry players to move forward with confidence. This is an important factor to consider as the digital asset industry continues to evolve and mature over time.
BNY Mellon’s commitment to digital assets is further demonstrated by its recent appointment of Caroline Butler as the CEO of Digital Assets. Butler, who was previously the CEO of Custody Services, will be responsible for driving the next wave of adoption for the bank’s clients and helping to shape the future of the digital asset industry. This appointment highlights BNY Mellon’s efforts to provide innovative solutions and services to its clients in the rapidly evolving digital asset space.
The growing demand for digital assets is not unique to BNY Mellon. Many other financial institutions and companies are exploring the potential of blockchain and cryptocurrencies, recognizing the potential for new business opportunities and increased efficiency in the financial sector. The rise of decentralized finance has added to the excitement and interest in digital assets, providing new avenues for investment and financial services.
However, the digital asset industry is still in its early stages and faces a number of challenges, including regulatory uncertainty and security concerns. Despite these challenges, the industry is rapidly evolving, and the growing interest from institutional investors is a clear sign of its potential.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
