Recognizing the familiar in a financial paradigm shift
Despite doubts, concerns about valuations and volatility, digital assets will become mainstream
In June 2020, after more than 30 years working in the traditional custody business, I moved into the world of digital custody when I joined Hex Trust, a digital custodian based in Hong Kong, as a member of the advisory board. What excited me was the potential of the digital world to revolutionize capital markets and re-write the roles, the participants and the assumptions that exist in the traditional world. I knew it would be very different from what I had left. But I was also a little surprised similarities between old and new.
The participants in the two industries are quite different – traditional custody is dominated by the large banks and financial institutions with employees numbering in the tens or hundreds of thousands, whereas the digital world comprises mostly relatively small…