By George Ward
As the crypto industry continues to evolve, more traditional financial institutions (TradFi) are starting to get involved. This action is a significant step forward for the industry, as it shows that these conventional players are beginning to recognize the prospect of the blockchain and the cryptocurrency market.
One person who has been keeping a close eye on this development is Sendi Young, Ripple’s EU Managing Director. Young recently expressed her belief that the trend of investments by traditional financial institutions into crypto-related businesses will continue into 2023.
The Predictions by Young about the fate of crypto accessions in 2023 by TradFi were due to the rising interest from traditional economic giants in acquiring subsidiaries of the now-defunct cryptocurrency exchange FTX.
Court records from Jan. 8 show that as many as 117 strategic and financial investors are eager to acquire one or more FTX-owned companies, such as LedgerX, FTX Japan, Embed, and FTX Europe. Young also foretells that the next year will be a phase of multiple investments in the cryptocurrency and blockchain sectors.
According to Young, in 2023, the unification of the cryptocurrency sector is ready to rise. Financially stronger firms are increasingly taking over cryptocurrency and blockchain businesses. In addition, these acquisitions will aid in bolstering the industry in the wake of the doom of FTX and other matters faced by entities like Three Arrows Capital, Celsius, Voyager, and others.
Furthermore, Young anticipated that by 2023, there would be a remarkable uptake of fiat-backed stablecoins as organizations become familiar with the usefulness of blockchain for immediate vendor payment.
A Growing Interest From Institutional Investors
She also foretold that central bank digital coins would mature. This assumption was related to the FTX incident, which emphasized the requirement for countries to formulate a true digital payment asset as a safe resort to other cryptocurrency solutions.
Series of Fintech and other traditional financial institutions have already included crypto investment strategies as part of their plans. These moves are part of a more significant trend of traditional financial institutions getting involved in the crypto market.
This development is likely due to a growing interest among these institutions regarding the potential of cryptocurrencies. Also, the fact that regulations are taking shape in the cryptocurrency sector.
For example, the US Securities and Exchange Commission recently proposed a new set of rules requiring exchanges to register with the SEC. This move is a significant step towards greater security and transparency in the crypto industry.
As traditional financial institutions continue to show an interest in the cryptocurrency sector, it appears that Young’s prediction of increased purchase activity in 2023 will likely come to fruition. This action would be a significant step forward for the sector, as it would signal even greater acceptance of cryptocurrency by the traditional financial world.