In a recent survey conducted by blockchain infrastructure provider P2P.org, it was found that institutions are facing challenges and trends in their crypto adoption strategies. More than 15 institutional players participated in the survey, with intermediaries, investment funds, and venture capital funds making up a majority of the respondents. The survey highlighted opportunities for institutions to adapt to the changing practices in the crypto industry.
One of the key trends affecting institutional crypto strategies is the integration of new crypto yield products aligned with risk tolerance. Regulatory compliance was also identified as a challenge for institutions looking to incorporate new products into their offerings. Finding the right strategy for allocating crypto assets and integrating multiple yield solutions were reported as major challenges by the participants. Custodians limiting product functionality was also identified as an obstacle by some respondents.
P2P.org identified risk as a common theme across various levels, including technology, operations, and regulation. Smart contracts were highlighted as a risk to security and reliability by the respondents. In terms of operations, certain blockchain mechanics were found to impact the movement of funds across industries. Regulatory challenges were also reported by participants, with integrating new products in line with regulatory guidelines being a major concern for institutions.
The involvement of legal and compliance teams was deemed critical in assessing the risk factor associated with new products. Failing to correctly assess the regulatory layer could result in resources being allocated to initiatives that may later be deemed unacceptable by regulatory authorities. With regulatory requirements posing a significant challenge, institutions are facing limitations in product integration and innovation in the crypto space.
Overall, the survey conducted by P2P.org sheds light on the challenges and trends affecting institutions’ crypto adoption strategies. It also emphasizes the importance of addressing issues related to risk, technology, operations, and regulation in order to effectively navigate the evolving practices in the crypto industry. By exploring opportunities and adapting to changing dynamics, institutions can overcome obstacles and drive innovation in their crypto strategies.
