Michael Demissie, head of digital assets at Wall Street powerhouse Bank of New York Mellon (BNY Mellon), revealed that investors are still very interested in the digital asset space amid the bear market.
According to a Reuters reportDemissie believes cryptocurrencies are here to stay as investors have not lost interest in the fledgling industry, despite the collapse of several companies and other adverse events over the past year.
Demissie: digital assets are here to stay
The BNY Mellon executive spoke on a panel on crypto at Afore Consulting’s seventh annual FinTech and Regulation conference.
“What we’re seeing is that customers are absolutely interested in digital assets, broadly speaking,” Demissie said.
To back up his point, Demissie cited an investigation the bank conducted in October. THE reportdubbed “The Migration to Digital Assets is Accelerating,” revealed that institutional interest and investor demand for crypto assets is growing.
Of the 271 institutional investors surveyed, 91% said they were interested in investing in tokenized products because it would revolutionize asset management and be good for the industry.
Additionally, 88% of respondents said they were comfortable with the digital representation of cash via blockchain-based technology, and 86% of bank customers said they use the “buy and hold” strategy, which suggests that they viewed cryptocurrencies as long-term assets.
The Crypto Industry Needs Deeper Regulation
Notably, 69% of investors revealed that their chances of getting involved in crypto would be increased if highly rated institutions offered digital asset services. To that end, Demissie urged U.S. officials to ensure regulatory clarity so the industry can move forward.
“It is important that we navigate this space responsibly. We absolutely need clear regulations and rules for the road. We need responsible players who can deliver reliable services that live up to investors’ trust,” he said.
Meanwhile, BNY Mellon recently appointed Caroline Butler as CEO of Digital Assets to help accelerate the bank’s crypto initiatives. This comes after the financial giant unveiled its crypto custody platform in October. As CryptoPotato reportedthe move made BNY Mellon the first U.S. bank to allow customers to deposit their crypto holdings.
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