A recent survey conducted by blockchain infrastructure provider P2P.org reveals several challenges and trends impacting institutional crypto adoption strategies. The study also identifies potential opportunities for institutions to adapt to the rapidly evolving crypto landscape. Participants included over 15 institutional players such as intermediaries, investment funds, and venture capital funds.
These organizations collectively hold large amounts of assets under management (AUM). The survey found that intermediaries, or companies managing assets on behalf of others, made up 46% of respondents. Survey Findings According to the findings, 33.4% of respondents cited difficulties in integrating new crypto yield products that align with their risk tolerance.
Additionally, 13.3% reported that regulatory compliance hinders their ability to adopt new products into their offerings. Another notable trend highlighted by the survey is the challenge of finding the right strategy for allocating crypto assets, which was identified by 6.67% of respondents. Furthermore, 6.67% indicated that integrating multiple yield solutions simultaneously presents a significant hurdle.
Interestingly, 6.67% of participants attributed their biggest challenge to custodians limiting product functionality. However, the most commonly cited issue (33.29%) was not explicitly listed in the report. P2P.org observed that risk is a recurring theme throughout the survey responses. Respondents highlighted risks associated with technology, operations, and regulation.
Specifically, they noted that smart contracts pose a threat to their organizations’ security and reliability. In terms of operations, respondents emphasized that certain blockchain mechanics can impact the movement of funds across industries. For example, withdrawing funds from staked tokens can make them temporarily unavailable for reinvestment, potentially hindering capital allocation flexibility.
Regarding regulation, participants stressed the importance of involving legal and compliance teams when assessing the regulatory implications of new product initiatives. Failing to do so accurately can lead to misallocated resources and potentially non-compliant product launches. Conclusion Overall, the survey reveals several challenges and trends impacting institutional crypto adoption strategies.
These include regulatory hurdles, operational complexities, and technological risks associated with smart contracts. Despite these obstacles, P2P.org identifies opportunities for institutions to adapt and remain competitive in the rapidly evolving crypto space.
Source
As per reported by cryptopotato.com