ADVERTISEMENT
Advertise with BNC

If money follows talent, crypto has a bright future

Follow the talent. Smart investors know that boom markets attract a wave of top talent, chasing new money. In the past 12 to 18 months, there has been an exodus of high-level staff from the traditional financial industry to crypto startups. Will institutional money follow?

Remuneration packages in banking are still below what they were before the 2008 global financial crisis. Banks have de-risked and downsized, increasing the competitiveness of the financial services job market. These factors, combined with the allure of joining an innovative new hyper-growth industry, explain why some traditional financiers have joined the blockchain space.

Financiers are moving on

It’s not only disillusioned, millennial bankers that are joining bitcoin companies. There’s also a wave of C-level baby boomer executives forging new careers in crypto and building the infrastructure necessary if more of their old peers are to follow.

As Brave New Coin reported in July 2018, top executives from traditional financial institutions have started to move into new roles in the digital asset industry. This trend continued even during the depths of the 2018 crypto bear market.

In September 2018, a group of former UBS bankers reportedly launched SEBA Crypto AG, located in Switzerland’s ‘crypto Valley.’ Lead by new Chairman Andreas Amschwand, who previously ran the foreign exchange and money markets business for UBS, SEBA aims to become a full-service crypto bank that offers traditional banking services to blockchain startups, crypto custodianship, and asset management services.

A month later, the Mauritius-based investment bank for crypto and blockchain startups, Fincross International, announced its launch after receiving an “in-principle approval for an investment banking license from the Financial Services Commission of Mauritius (FSC).” The new bank is run by former Societe Generale Private Bank CEO of the Middle East and Africa, Eddy Abramo.

In 2019, the trend continues. Earlier this month, former Deutsche Bank executive, Kenan Altunis, was appointed CEO of Founders Bank, according to a report by Bloomberg. Malta-based Founders Bank aims to establish itself as a crypto-friendly bank, by providing traditional financial services to crypto and blockchain startups, which have historically had a difficult relationship with traditional banking service providers.

Altunis previously co-headed Deutsche Bank’s Institutional Client Group where he managed a team of over 1,000 bankers and had direct interactions with leading financial institutions and financial regulators.

Mark Yusko, the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management, LLC has founded Morgan Creek Digital Assets and partnered with long term Bitcoin bull Anthony Pompliano. The pair use their high-profile Twitter accounts to make the case for institutional investors to “get off zero” and make an allocation to crypto. Yusko now publishes regular reports that make the case for blockchain as the best investment opportunity in a generation.

If money follows talent, institutional money should enter crypto soon

As more skilled, well-connected former financiers enter the crypto asset space, they will pave the way for institutional money to follow. Once crypto has an ecosystem that meets the needs of institutional investors and the necessary regulatory framework, the blockchain investment space will present compelling opportunities.

Fidelity Digital Assets is the most visible example of this trend at present. The investment firm has already on-boarded a number of institutional clients as it moves ever closer to its bitcoin trading and custodial service. Fidelity is expanding and its job posting board has openings for a range of digital asset-related positions. Similarly, Bakkt’s launch in July will help attract the kind of institutional players willing to enter the crypto space via a regulated counterparty owned by Wall Street veteran, the Intercontinental Exchange (ICE).


ADVERTISE WITH BRAVE NEW COIN

BNC AdvertisingPlanning your 2024 crypto-media spend? Brave New Coin’s combined website, podcast, newsletters and YouTube channel deliver over 500,000 brand impressions a month to engaged crypto fans worldwide.
Don’t miss out – Find out more today


ADVERTISEMENT
Advertise with BNC
ADVERTISEMENT
Advertise with BNC
BNC Newsletters: A weekly digest of the most important news and analysis.
ADVERTISEMENT
Advertise with BNC
Submit an event on bravenewcoin.com
Latest Insights More
ADVERTISEMENT
Advertise with BNC