KPMG, one of the Big Four auditors, recently released a bullish report on cryptocurrencies titled “Institutionalization of cryptoassets”. The report states that, in order for the crypto ecosystem to “realize its potential”, institutional investors need to join the industry.
It also focuses on the way institutional investors can join the crypto world and why that is of imperative importance. The report also touches on the challenges this process can can face as well as the circumstances needed for cryptocurrencies to be considered a legitimate asset class.
“Cryptoassets have potential. But for them to realize this potential, institutionalization is needed. Institutionalization is the at-scale participation in the crypto market of banks, broker dealers, exchanges, payment providers, fintechs, and other entities in the global financial services ecosystem. We believe this is a necessary next step for crypto to create trust and scale.”
Cointelegraph previously reported that KPMG has historically focused more on the risk management side of blockchain technology, being more skeptical towards the industry in its earlier years. For KPMG it seems, crypto now is a legitimate deal that can no longer be ignored.
“In 2018, we are seeing a wave of new entrants in the market such as security token platforms, stablecoins, and even established financial services institutions that are launching crypto products and services. Cryptoassets are now impossible to ignore.”
There have also been various other sources, stating the same thing as KPMG’s “Institutionalization of cryptoassets” report – that the crypto ecosystem’s tide will turn once institutional investors get involved.