Short-Term Crypto Turbulence Won't Derail Institutionalization — Market Talk
Increased volatility is to be expected in the wake of the Binance hack but the market reaction has been relatively orderly so far, says Fabian Dori, CIO at Sygnum Bank. He attributes that in part to the timely freezing of some affected assets and Binance's commitment to cover losses. Importantly, the information available so far indicates a compromise of a specific transaction-authorization layer, not the blockchain protocol layer, Dori notes. That suggests long-term institutional adoption won't be affected. Instead, such incidents reinforce the trend toward institutional-grade setups, he says. Dori sees sentiment as increasingly driven by trust in independently audited infrastructure, rather than short-term narratives and price action. "Consequently, the ongoing migration to off-exchange settlement and custody solutions might be accelerated." ([email protected])