For digital money to fully realize its potential, the industry must open doors for institutional investors. This conclusion was reached by the experts of the Dutch KPMG audit company, one of the Big Four world auditors.
The document named "Institutionalization of Cryptoassets" states why and how large investors should enter the crypto market, what problems they are to face, and what exactly can make cryptocurrency become a full-fledged financial assets class.
The authors of the report believe that crypto assets clearly have potential, but its implementation requires institutionalization. It implies a large-scale participation of exchanges, banks, payment providers, broker-dealers, and fintech companies within the market. Together they will form a global ecosystem of digital financial services. It's the necessary next step for the crypto market to build trust in the traditional financial industry and reach its proper scale.
Bad background
The forecast of the world's leading auditors was supported by other industry reps. It's expected that the close-to-panic market situation will change after the arrival of institutional investors, caused by the launch of the Intercontinental Exchange (ICE) Bakkt trading platform. Its launch is scheduled for December.
The KPMG report came amid a sharp decline in the Bitcoin value, which other altcoins followed. The decline was caused by uncertainty about the fourth largest cryptocurrency by capitalization: Bitcoin Cash.
Yuri MolchanTogether with other audit market leaders, KPMG has changed its attitude towards the market and currently provides cryptocurrency risk management services. In this sense, the company follows the trend together with Bank of International Settlements and European Central Bank.
KPMG is one of the world's largest networks providing professional audit services. It's included in the so-called "Big Four" along with Deloitte, Ernst & Young and PwC. Its international HQ is located in Amstelveen (Netherlands).
Dan Burgin
Alex Dovbnya