30s Summary
Experts believe the US election results will not deter traditional finance (TradFi) institutions from crypto, regardless of the outcome. A Trump victory is expected to boost digital asset prices short-term and may lead to an influx of new ETFs. However, a Harris victory might slow adoption due to stricter regulations. Notably, Swift recently partnered with UBS and Chainlink for interbank crypto transaction settlement. Also, Citigroup and Fidelity International created a prototype on-chain money-market fund including a digital forex swap. The general consensus is that institutional adoption will continue globally.
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The world is anxiously waiting for the results of the U.S. election. For the crypto community, a big question remains – will this influence the plans of financial giants for the crypto industry?
Many experts CoinDesk has spoken to agree that regardless of the results, TradFi likely won’t back off from crypto.
Crypto enthusiasts betting on the outcome think Trump winning the second term as president would boost digital asset prices in the short-term. On the other hand, a victory by Vice President Harris could negatively impact these prices. Nonetheless, large financial institutions seem unfazed by the results, seeing it more like a temporary catalyst that won’t slow down the long-term adoption of crypto and blockchain technology.
Phillip Shoemaker, executive director of Identity.com, believes that the adoption of digital assets at the institutional level will continue globally, irrespective of who wins the election.
There have been several positive developments along these lines this past week. Swift, the TradFi interbank messaging system, partnered with UBS and Chainlink to allow settling digital asset transactions with fiat payment systems. Also, Citigroup and Fidelity International developed a concept for an on-chain money-market fund that includes a digital forex swap.
Shoemaker believes that if Trump wins, we might see a flurry of new ETFs in the U.S. for a wider variety of digital assets.
However, if Harris wins, it may slow down the adoption due to a more restrictive regulatory regime, according to Markus Levin, co-founder of XYO Network. Despite this, Levin is still optimistic about institutional adoption happening, albeit gradually, under a Harris administration.
In summary, with the U.S. election results approaching, the crypto industry is watching closely. However, regardless of the outcome, experts believe the digital assets industry will continue to advance with growing attention from financial giants.