“Obviously, there are still challenges as governments around the world look for ways to keep the industry innovative while also in compliance. However, I’m confident that we will figure out some better solutions in 2024,” Volkov said.
A growing number of financial institutions are embracing crypto and Web3 technologies, signaling a notable shift in the industry landscape.
Noteworthy examples include Raiffeisen Bank Austria and state banks in Switzerland entering the crypto space, while major players like Societe Generale are diversifying into stablecoin operations. Beyond a mere influx of traditional entities, this trend reflects a wider consolidation pattern.
A key facet of this transformation is the increasing reliance of major financial institutions on technologies pioneered by crypto-native companies. For instance, Raiffeisen Bank’s crypto service integrates seamlessly with Bitpanda, a regulated Austrian crypto exchange, and Swiss banks are tapping into crypto offerings and blockchain-supported infrastructure.
Simultaneously, service providers are tailoring custody solutions specifically for banks, mirroring offerings from industry leaders like Metaco and Ledger. Fintech companies such as YouHodler are also broadening their portfolios to cater to B2B or B2B2C partnerships, providing retailers with a suite of tailored services.
“In 2024, these collaborations will become even more prevalent, indicating a significant shift in the financial industry,” YouHodler CEO added.
The dynamic convergence of cryptocurrency and traditional financial institutions is poised to capture increasing interest across companies of various scales. In the unfolding landscape of Web3 fintech, the emergence of “CeDeFi solutions” stands out as a secure and innovative alternative to conventional practices.
In essence, these solutions harmonize the benefits of decentralized finance—such as earning interest on cryptocurrency assets, facilitating streamlined trading, and providing access to loans—with the stability and regulatory safeguards associated with established financial institutions.
Acting as a bridge, CeDeFi offers a nuanced approach to addressing numerous contemporary challenges in the financial industry.
The forthcoming BTC halving marks a distinctive departure from its predecessors, characterized by a substantial increase in the participation of institutional investors.
In contrast to prior instances when their involvement was cautious and peripheral, institutional players are now demonstrating a more substantial commitment to the crypto market.
“Many analysts predict that the upcoming bull run will be driven primarily by these institutional players, and I agree with that.”
“The introduction of spot ETFs will mark a pivotal moment for many investors previously hesitant to enter the crypto market,” Volkov said.
“The crypto market, while more stable than in its early days, is still notably volatile. As we head into 2024, I believe this trend will continue, particularly with the rise of emerging technologies like AI.”
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.