KPMG Says Finance Sector Likely to be Biggest Beneficiary of Crypto

KPMG Says Finance Sector Likely to be Biggest Beneficiary of Crypto

Published in the midst of the current market downturn, a report from one of the world’s largest financial auditors, KPMG, suggests that the future success of crypto-assets will depend on their ability to attract institutional interest.

Complied with input from Coinbase and other key players within crypto, the research suggests that the level of institutionalisation will be equal to the ability of blockchain-based businesses in building trust and facilitating scaling.

Driving Growth

Report co-author and managing director of KPMG’s crypto assets services, Kiran Nagaraj, said that “While Bitcoin is still dwarfed by traditional asset markets, crypto is now much broader than just Bitcoin, and the debate on the case for crypto is far from settled. Crypto has many use cases but, in order to succeed, institutionalisation is the necessary next step to help drive growth for the tokenised economy.”

It is institutional adoption that the authors believe will be key to transforming many areas of the world’s economy, with the financial sector likely being the biggest beneficiary, provided that the sector itself engages with the technology.

Coinbase’s Chief Compliance Officer, Jeff Horowitz, explained that “The institutionalisation of crypto will bring new capital into the space and drive a range of innovation that will ultimately benefit all participants.”

Nagaraj agrees and suggests that “…there are real problems that cryptoassets are looking to address and their staying power will be defined by their ability to reduce friction and inefficiencies that currently exist within the global economy.”