The Hedgeweek APAC Digital Assets Summit 2024, held on December 4 in Singapore, gathered thought leaders and innovators to explore the rapidly evolving landscape of institutional digital assets. EDXM Global CEO Kai Kono and Head of Institutions Kal Chan proudly represented EDXMG at the event, hosting a roundtable on the topic of “Institutional Adoption in the Digital Assets Market.”

Kai and Kal led an insightful conversation addressing the catalysts enabling more widespread acceptance among traditional finance players and the critical role of infrastructure and service providers in supporting institutions with reliable, secure and scalable solutions.

Key takeaways from the panel included:

• Institutional Adoption is Accelerating: Family offices, asset managers and financial firms are integrating cryptocurrencies into their portfolios, driven by increasing regulatory clarity, innovative product offerings and advances in blockchain technology.
• Regulatory Shifts are Catalyzing Growth: The appointment of crypto-friendly regulators and pro-crypto political leadership in the U.S. is fostering an accommodating environment for institutional growth globally. This trend signals optimism for more robust international participation in the digital asset market.
• Tokenization is Unlocking New Value Streams: Tokenization – or converting traditional assets into digital tokens on blockchain platforms – is being explored by institutions as an avenue to increase liquidity and capital efficiency.
• ETFs are Opening the Door to Crypto: The launch of Bitcoin ETFs and other crypto-related investment products is simplifying institutional access to digital assets. ETFs have become the most common entry point for asset managers and family offices to allocate digital assets into their portfolios. From here, firms often expand into options, futures and structured products to hedge overall exposure and increase risk-adjusted returns.
• The Future is Bright (But Not Without Challenges): The convergence of traditional finance and digital assets suggests a transformative period ahead. We can expect to see enhanced stability for major cryptocurrencies, broader adoption of tokenized assets and a more integrated global financial system down the road. Nevertheless, concerns around regulatory compliance, security and market volatility remain critical considerations for sustained growth in the sector.

For EDXM Global, participating in events like the Hedgeweek APAC Digital Assets Summit is essential to fulfilling our mission of building institutional-grade infrastructure for digital assets. By driving conversations around innovation and adoption, we remain committed to bridging the gap between TradFi and the financial industry’s digital future.