Does Crypto Really Matter to the Traditional Securities Industry?

September 2018

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The cryptocurrency and Internet Coin Offering (ICO) industries have captured public attention in a way that few financial matters have since the Global Financial Crisis. It is not uncommon to read about bitcoin’s rise and fall in the major news outlets and to hear about deep pocketed investors on the lookout for opportunities. But the crypto industry is growing up alongside the traditional securities industry, a well-established business that generates hundreds of billions in annual revenues, and must still prove its actual value.

This Finadium report looks at how much big capital markets players – banks, custodians, asset managers, hedge funds and institutional investors – should get excited about crypto as a business model extension. What does crypto offer that the securities industry can’t find elsewhere, and should traditional securities markets participants care about crypto? Aside from the bragging rights of telling your neighbor that you trade bitcoin, is there enough meat on the bones of the nascent crypto industry to make it interesting to get involved? Some firms have already publicized their actual or pending participation, but should every firm be launching a crypto desk and facilitating ICOs?

This report should be read by securities markets participants evaluating their opportunities in crypto, and by crypto market participants looking to engage with large securities markets participants.

Table of Contents

  • Executive Summary
  • The Institutionalization of the Cryptocurrency Market
    • – Securities Industry Crypto Initiatives
  • Crypto Through the Securities Industry Lens
    • – The Small Cap Exchange Model
    • – Digitization of Securities Assets
  • What Crypto Needs to Gain More Attention
  • About the Author
  • About Finadium LLC

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