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Crypto trading not the best use of blockchain, says survey

Crypto, bitcoin, blockchainA majority of asset managers believe there are better uses for blockchain than trading cryptocurrencies, suggests research.

The Future of Finance Study, commissioned by the Swiss financial market infrastructure SIX, canvassed more than 300 financial institutions and found that just 20% believe that crypto trading is a meaningful use of distributed ledger technology (DLT).

Instead, more than half of respondents (56.23%) think DLT should be used to drive new revenues or generate cost savings from existing business.

The survey comes in the wake of the high-profile collapse of crypto exchange FTX where a lack of transparent regulation over crypto trading was cited as one of the reasons for the debacle.

However, as David Newns, head of SIX Digital Exchange, said, the trading of crypto is not where the central benefits of the technology lie.

“There are numerous ways digital assets could be deployed in the traditional financial system to create more resilient markets,” said Newns.

“Using digital tokens for the issuance, trading and settlement of equities and bonds, for instance, could remove significant delays, costs and risks across the market.”

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