The digital asset space moves quickly, while traditional finance is close to understanding Blockchain’s promise And cryptocurrency innovators have given the pace. Developments such as token and modern stocks security Standards fuel conversations across industry world events.
Adam Levine, Vice-President Director of Business and Partnerships at Fireblocks, and CEO of the Fireblocks Trust Company, is held at the intersection of this progress. Speaking with Beincrypto in Sunnycan on the French Riviera, Levine shared the initial perspectives on regulatory progress, tokenization and the current state of the adoption of institutional cryptography.
Institutional understanding, adoption rhythm and evolutionary risk curve
We see the conversation becoming much smarter, right? In the past, he looked for reasons to say no, whether it is regulation or said that technology did not work. What we have seen now is that traditional institutions see proof of the world of cryptography of the scale and speed that blockchain can make.
Now they are starting to really consider what they could do smarter and better with technology. Thus, the nature of conversations is very improving. Technological teams are really starting to understand the difference and, while infrastructure on different protocols, what are the limits and opportunities with intelligent contracts.
So, overall, it is really encouraging to see that instead of starting from a place of no, it reflects on what is possible to obtain a commercial result.
No surprise that banks are never the fastest, right? But the native crypto teams that are still at the forefront, they are able to execute much faster.
These are different stakeholders. What we see is that some of these Crypto Aboriginal companies have evolved to be more mature companies. And fintechs and neobanks are that, between the two, where they still have the stakeholders who need you to think about all different types of risks, but move so quickly than a traditional bank.
So, once the banks are really moving, you feel the impact, but it is certainly this crypto native and now the finches of the Neo bank that are starting to see the impact much faster.
Liquidity, interoperability and rise of layer 2
What we have seen from so many people, whether L1 or L2, there is a similar gameplay that they all have when it comes to going to the market. They are looking for a niche where they can differentiate themselves, and they use their funding to provide important incentives for the industry to adopt them. There is nothing wrong with that. It’s a good thing. But what it means is that certain types of assets become tokenized on one chain compared to another. And now you have these different liquidity pools.
The same thing you can say with the Stablecoins, right? Having a USDC or USDT on a protocol, but you want to buy an asset on another is not functional, right? So you have these problems and many suppliers of stable parts say, great, I will simply encourage to natively deliver on several protocols. It is not really the most effective. So what is exciting is the innovation that we see in interoperability.
The companies with which we work in close collaboration, Layerzero, Ownera, Chainlink, Wormhole, they all provide very important interopeering solutions which will help to solve this problem of tokenization of the games on a blockchain, but having the stablecoin which they need to buy it to the other. People no longer have to think, have USDC on Polygon and USDC on ETH, but I want to buy an active as a basis, now what?
These solutions are essential, and they come to a crypto native, but even the biddle and examples, Kinexis and JPM, are real POCs and in production delivery which depend on these temporary partners.
Safety and MPC standards in crypto
MPC is the gold standard with regard to the quality of the security you use with your wallet. Where they control the keys is essential. Unfortunately, many people still think that the multi-SIG is MPC or a multi-party calculation. This is clearly not the case. It may seem obvious, but we can indicate fairly public examples of very, very large hacks or as a multi-SIG behind the scenes.
If you don’t want to buy cheap fish or safety, you need to focus on a version of MPC. Obviously, we believe that our experienced experience and resilience are where you have to start, but MPC must be the norm.
Regulatory landscape and progress of digital assets
I would say that the industry is ahead of the place it was last year, and it is probably because of change on the American market.
Each market regulator must consider their own concerns, and some, like Vara, have been ahead for some time. But when I travel worldwide, I see that the big institutions want to know what will happen in the United States because it will be the brand.
And the first weeks of the current administration of the federal government made very major changes to demonstrate not only the traditional American financial actors, but for the world that tokenized assets, the blockchain, the crypto is correct. And now we are starting to see the change in the regulatory community. Genius Act will be critical, not only at the national level, but worldwide. And this reports to traditional banks and players and payment service providers. They should look into this.
Adoption of the tokenization center and use cases
The tokenization engine is great. It allows you to use our library of smart contracts to tokenize what you want. But we think of a more open system. So if you have your own smart contract that you have developed or one of your partners like Tokeny, and want to bring this in mint and burn, you can absolutely. We note cases of very good customers of certain customers like tokenizing private debt, the capital in Tokenization and the contribution to new markets. It’s fantastic.
We still see some of the cases of Funky Edge where people want tokensize wine or investment quality resources. The tokenization engine works well.
What is not said on stage: Institutional DEFI and competitive response
The announcement of the robination was certainly really interesting. We hear people talk about how Europeans can easily access an incredible and simple application for American actions. They are really delighted to see how the rest of the market, some of the big banks react. It is therefore wider than the impact of robination and their … The conversation that happens constantly is the way in which institutional defect is adopted by very large asset managers, hedge funds and when banks begin to facilitate this. It seems to be a key thing.
Conclusion
Adam Levine de Fireblocks offers a clear vision of the rapid evolution of the infrastructure of digital assets, where traditional finance continues its constant evolution towards more intelligent adoption and financial technologies and indigenous teams of cryptography stimulate a rapid innovation. The challenges of interoperability and liquidity are met by the progress of protocol solutions, while security standards such as MPC establish new references. The evolution of the regulations strengthen the essential confidence for institutions, and the resurgence of the use of tokenization signals a ripe industry practiced for collaboration and consumer success.
The progress of the sector remains closely linked to regulatory clarity, the competitive innovation of Fintech and the commitment to security and transparent interoperability.
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