The Lex column (“Digital Assets: Investment Analysts Tackle Solutions That Lack the Problems,” October 19) highlights how “blockchain has enormous potential to streamline transactions on underlying conventional assets “. We’ve been discussing this for over half a decade.
As the global appetite for crypto instruments soars, we firmly believe that the underlying technology is where the real value lies for wholesale capital markets.
The most advanced enterprise blockchain platforms are ready to support the financial services infrastructure of tomorrow. It is now just a matter of “when” and not “if”. But this is only due to years of close collaboration between regulators, the tech community and participants, working together to advance market developments in a rapid but responsible manner.
Bitcoin’s lawless roots meant this hadn’t happened with cryptocurrencies. Whether cryptos have intrinsic value is just one of many concerns for the regulatory community. Until regulators decide on a safe and sustainable way to allow their use in the wholesale financial markets, any attempt to produce accurate research and valuation is like trying to predict the weather by lifting a finger up. air.
David e rutter
Founder and CEO, R3
Former Managing Director, ICAP
London EC2, United Kingdom