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Elena A. Nov 1, 2022
Fintech News
Last active over 7 days
Last active over 7 days
Why is the adoption of Digital Assets by the Buy-Side portfolio and fund managers still very slow? What are the main blocks to mass adoption?

There is a host of reasons.

Compliance and regulatory hurdles - but these are being addressed.

Several global regulators, including the US, approved the inclusion of digital assets in institutional portfolios and retirement accounts. European Parliament provisionally agreed upon The Markets in Crypto Assets regulation, which will protect investors and preserve financial stability while allowing for innovation in the crypto asset sector. It will focus on: Utility tokens, Asset-referenced tokens, and e-money tokens.

Risk assessment, Price Volatility and Real-Time Valuation are among other issues.

Even If your strategy allows adding multiple assets, other factors still need to be considered from a front, middle and back office perspective. There still needs to be more off-the-shelf infrastructure to support trading and record-keeping.

In that sense, partnerships with the newest digital trading platforms, custodians, and asset servicers are critical.

Yes, it will be painful and uncomfortable, but you will be a front-runner with other market players on the buy-side who are essentially there creating a new asset class.

One example is Societe Generale - FORGE, that services asset managers in managing digital-native financial products registered on the DLT.

There are still more Qs, especially on how do you integrate DLT-based order management and trade execution with existing PMS.

Asset servicing must be able to "interconnect and interoperate" with digital trading platforms for holistic fund administration, accounting, custody, and other services.

The below progress by QPQ and Greg Chew is crucial for institutional investors' adoption of digital assets. QPQ's development, brings closer the new market reality when Fund Managers will be able to have exposure to digital assets using DLT and seamlessly include them into their portfolios.
  3 comments
Master C. Nov 4, 2022 -10:48AM Great to read this news Greg Chew
Greg C. Nov 2, 2022 -12:56PM Thanks, Elena Kozhemyakina, much appreciate the support.
Angel L. Nov 1, 2022 - 8:04PM Glad to read this news on QPQ Greg Chew

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