Lex’s column (“Digital Assets: Investment Analysts Tackle Solutions that Lack Problems,” October 19) highlights how “Blockchain has tremendous potential to streamline transactions in underlying conventional assets.” We have been arguing this for over half a decade.
As the global appetite for crypto instruments grows, we firmly believe that the underlying technology is the real value for the wholesale capital market.
The most advanced business blockchain platforms are ready to support tomorrow’s financial services infrastructure. It is now only about the “when” and not the “if”. However, this is only due to years of close collaboration between regulators, the technology community, and the participants who work together to rapidly but responsibly advance the development of the market.
Bitcoin’s anarchic roots meant that it didn’t happen to cryptocurrencies. The question of whether cryptos have intrinsic value is just one of many concerns of the regulatory community. Until regulators decide on a safe and sustainable way to enable their use in the financial markets for large accounts, any attempt to do accurate research and assessments is like trying to predict the weather by sticking a finger in the air .
David E. Rutter
Founder and Managing Director, R3
Former Managing Director, ICAP
London EC2, UK