For financial services leaders looking to offer crypto products, the most important question is: How can you seize market opportunity while mitigating regulatory and strategic risk?
Crypto moves fast. In little more than 10 years, bitcoin has grown from a curious cypherpunk experiment to a global financial force.
When technology moves this quickly, there’s a tendency to accumulate “tech debt,” a backlog of bugs and vulnerabilities that must be retroactively eliminated. One could argue that crypto’s tech debt is security and compliance risk mitigation.
For institutions, the stakes are high. From hacks to scams, regulatory obligations to market volatility—keeping your assets safe, secure and compliant requires education and training on crypto’s logistics, and partnerships that can help you estimate your risk exposure.
To find out how financial institutions can reduce the ecosystem’s many threats and increase confidence in and adoption of crypto, we spoke with Jeff Billingham, vice-president of capital markets at Chainalysis, the New York City-based blockchain analysis firm.
Chainalysis acknowledges the current volatility in the cryptocurrency market. Below, they share evergreen tips that can help financial organizations strategize for the future.