On November 15th, KPMG, a Netherlands-based auditing firm, released a report that details its assessment of cryptocurrency. The fascinating thing about the report was that it is bullish on the future of digital currency. However, the most striking part of the report is its conclusion. It posited that institutional investors must inject their funds into the industry to unlock its potential.
Titled “Institutionalization of Cryptoassets,” the report focuses on why it is imperative that institutional investors jump on the cryptocurrency bandwagon. Therefore, KPMG highlighted some inherent setbacks that prevent virtual currency from becoming “a full-fledged asset class.”
The report argues for institutionalization
Making a case for institutionalization, the report argues that the new asset class has the potential to create a new market for global financial services ecosystems.
Explaining further, the report specifically listed exchanges, brokers and banks as sub-units of the ecosystem that could have trusted and scalable crypto markets.
KPMG’s foray into the blockchain industry
Before now, KPMG had merely focused on risk management as it relates to blockchain technology. The auditing giant seems to be supportive of digital currency. It was cautious not to criticize cryptocurrency as many institutions have done this month.
Indeed, some of the institutions that have berated the new asset class are the European Central Bank and Bank of International Settlements. For KPMG, cryptocurrency is a “big deal” and deserves some undivided attention.
KPMG’s position on cryptocurrency trend
The company pointed out that there is a new wave of cryptocurrency entrants and products. These entrants send a strong signal that the new asset class has become impossible to relegate to the background. KPMG asserts that the industry needs institutional funds, and many organizations share this sentiment. In “Institutionalization of Cryptoassets,” KPMG predicted that the industry can expect exponential growth when these investors join the fray.
Therefore, it is likely that this will happening next month as the International Exchange’s trading platform, Bakkt, launches. If KPMG’s prediction is anything to go by, the take-off of cryptocurrency is imminent. This report comes amid extreme crashes of major cryptocurrencies as a result of the Bitcoin Cash (BCH) hard fork.
Want the latest crypto news? Join our Telegram Channel