A recent survey conducted by P2P.org, a leading blockchain infrastructure provider, has shed light on some of the challenges and trends affecting institutional crypto adoption strategies. The study, which involved over 15 institutional players such as intermediaries, investment funds, and venture capital funds, also highlighted potential opportunities for these institutions to adapt to the ever-evolving landscape of cryptocurrency.
The survey found that the biggest challenge faced by many of the participating institutions was integrating new crypto yield products that align with their specific risk tolerance levels. This was followed closely by regulatory compliance issues, which were cited as a major obstacle to adopting new crypto products into existing offerings.
It’s worth noting that institutions in this context refer to companies with large amounts of assets under management or control. Another interesting finding from the survey was that risk management was a recurring theme throughout discussions with participating organizations. This risk manifested itself across different levels within organizations – from technological concerns about smart contracts’ impact on security and reliability, all the way through operational hurdles such as withdrawing funds from staked tokens affecting capital mobility between different business areas.
Regulatory compliance was also identified as a major hurdle for many institutions looking to integrate crypto products into their offerings. According to the report, failing to properly assess regulatory requirements can lead to significant resource allocation issues if a project is eventually deemed unacceptable by regulators.
While these challenges present significant hurdles for institutional adoption of cryptocurrency, there are still opportunities for forward-thinking organizations to capitalize on emerging trends and technologies within the space. By staying abreast of regulatory developments and focusing on robust risk management frameworks, institutions can position themselves for success in this rapidly evolving sector.
Source
As per reported by cryptopotato.com