Hong Joon-ki, the CEO of Cumberland Korea at the very first official meeting between major crypto exchanges and government of South Korea said that both the local crypto exchanges and government must acknowledge Fidelity, Nasdaq and some of the major conglomerates in the international market working together to bolster the infrastructure around digital currencies.
During the meeting, he told the government officials including many Congressmen and authorities of Financial Service Commission and National Assembly members that the administration has to get familiar of the rate at which the digital currency industry is evolving with the involvement of major financial companies.
The world’s two major stock exchanges Nasdaq and NYSE along with the international market’s fourth-largest asset manager Fidelity in the third quarter of this year established bitcoin enterprises like custodial solutions and futures markets to stimulate the adoption of crypto and offer the simplest way for potential investors to invest in the crypto market.
The infrastructure of local crypto exchange market
In the last two years, only two of the major banks Nonghyup and Shinhan have planned to enhance the infrastructure of the local crypto exchange market. Shinhan Bank built a crypto exchange called Gopax which is equipped with the same trading engine utilized by Nasdaq with deposits and withdrawals backing to and from all of the financial institutions in the country.
With the major financial institutions competitively expanding into the crypto industry, the Cumberland CEO said that the local financial institutions and the government have to start leading programs to follow the international trend. He further suggested that banks in South Korea should seriously study the crypto market and the administration should motivate the banks to serve crypto investors.
Role of security tokens
Hong also added that security tokens will extremely alter the future of finance and crypto, and major venture capital companies and hedge funds already began to launch big bets on the security token market.
He went on to say that the international crypto market will quickly move to security tokens. And the international banks are entering the crypto market with the vision of digitalization and tokenizing existing assets and they are already expanding their initiatives.
Although the involvement of Goldman Sachs, Fidelity, Nasdaq and other firms in the crypto market may not have any effect on the short-term price of digital currencies. But the initiatives of the aforementioned conglomerates are letting the government authorities to observe the crypto industry from a different perspective and consider the digital currencies as an evolving asset class.