Building the new (Digital) Factory of Finance: Insights from CfC St. Moritz panel discussion

At the recent CfC St. Moritz conference, a panel titled "Building the New (Digital) Factory of Finance" brought together industry experts to discuss the future of finance and the necessary building blocks for a new financial system. Among the esteemed speakers was Greg Carson, representing XBTO Humla Ventures. The panel explored the potential for collaboration between incumbents and innovators to drive success in the evolving financial landscape.

The vision of a revolution in private capital markets

Carlos Domingo of Securitize set the stage by expressing his belief that private capital markets will experience a transformative revolution within the next 5-10 years. This sentiment resonated with the panel as they delved into the key components required for the new digital factory of finance.

Tokenization and the role of regulation

Jean-Baptiste Graftieaux from Bitstamp emphasized the necessity of regulation to enable access to cryptocurrencies and rebuild trust in the ecosystem. The panel agreed that the native issuance of all types of financial assets within the new digital factory of finance would be crucial. They recognized that creating a publicly accessible way to identify beneficial owners of financial assets, as Securitize aims to do, would be an important step.

Efficiency through digitization and stablecoins

The discussion highlighted the inefficiencies caused by the lack of a unified ledger for tracking ownership of private market assets. The separation of ledgers for securities and cash further complicates settlement processes. The panel recognized the potential of stablecoins and a shared public ledger to enhance transaction speed and efficiency. Digitization and tokenization were seen as key drivers to strip trillions of dollars in intermediaries from the financial industry.

Expanding opportunities and collaboration

Bitstamp, known as a major crypto exchange, expressed its plans to offer more than just digital assets on their platform. Tokenization emerged as a trend, with Bitstamp leveraging its technology to list a broader range of assets. The panel stressed the importance of innovation, establishing private permission zones, and focusing on use cases to create revolutionary financial products.

Regulatory landscape, custody solutions, and collaboration:

The panel acknowledged the need for improvements in the regulatory landscape, custody solutions, and partnerships with institutional players to enhance the buying, selling, and trading of digital assets. While regulation is often seen as lacking in the crypto industry, the panel emphasized the importance of compliance and finding technological solutions to navigate within existing frameworks.

Custody emerged as a critical aspect for investing in core infrastructure within the new digital factory of finance. The challenge of custody for real-world assets on the blockchain was acknowledged, and regulated exchanges like Bitstamp were highlighted as viable solutions.

Conclusion

The panel discussion at CfC St. Moritz shed light on the future of finance and the necessary building blocks for the new digital factory of finance. Tokenization, regulation, efficiency through digitization and stablecoins, and collaboration were key themes. Greg Carson's participation on behalf of XBTO Humla Ventures further emphasized XBTO's commitment to driving innovation and shaping the future of the financial industry. As the industry continues to evolve, the collaboration between incumbents and innovators will play a crucial role in building a more efficient, inclusive, and transformative financial system.

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Watch the full session here.