A traditional financial services firm can become a new frontier of fintech by using the technology that underpins cryptocurrencies such as Bitcoin BTC USD.
It's highly complicated and extremely scrutinized thanks to the current drama surrounding certain bad actors i.e. The scrutiny of what's gone wrong in the crypto world ends up bleeding into us trying to use fintech, even though it is apples and oranges, said Mark Smith, CEO of Symbiont, at the 2022 Benzinga Global Fintech Deal Day event.
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Smith explained that the pros are looking at solving hard problems, like smart contracts, and solving issues that continue to affect the financial markets. The days of mysticism behind this magic technology are gone. Smith appeared on stage for the panel Blockchain Technologies For Supporting Traditional Finance, along with Justin Chapman, Global Head of Digital Assets and Financial Markets for Northern Trust, and Milena Kohlhofer, Director of the Digital Assets and Financial Markets for the U.S. Bank.
To those traditional financial services firms who might be a bit timid about exploring the space, moderator Roy Ben Hur of Deloitte asked each guest to offer some advice.
You need to get support from the top of your organization, Chapman said, citing the importance of understanding and education first. Without the whole organization supporting you, projects can stall or fail to launch altogether.
Smith advised that the solution is appropriate, and that they understand the problem they're trying to solve. As Justin said : "Blockchain doesn't solve everything," Smith said, a lot of the failed projects were because they probably shouldn't have been applied in the first place.
She said that she believes that we have tested enough and that the clients we worked with have also tested a lot. When you get approval for a process early on, speak to regulators early on to get approval for the most impactful project. It will help to push real projects into production. Image: From Left - Roy Ben Hur; Milena Kohlhofer; Mark Smith; Justin Chapman photo by Joseph Parks for Benzinga