Where the Next Trillion in Tokenized Funds Will Park - with Alpha FMC
For Institutions: Efficiency First... Except For Bitcoin... Then it's Yield
Institutional Demand is a Mirror to Crypto Natives
We spoke with Christian Pellegrino, head of digital assets at Alpha FMC the consultancy trusted by 85% of the largest 100 asset managers by assets under management globally.
The conversation traces a few paths, but here are a summary of highlights I walked away with:
Efficiency > Yield
Stablecoins and tokenized vehicles slash settlement cost and widen distribution channels. This is alpha straight to the asset manager. They are less concerned with dollar yields for now.Regulatory “Green-Light” Needed
Regulation is still a sticking point for many to get involved. What this means for an institution is a “green light” from the SEC. You can see our analytics on regulatory licenses here.But Bitcoin Yields
The exception to the above is Bitcoin. Groups like Microstrategy and Cantor Fitzgerald’s investments in Bitcoin and Bitcoin lending is leading to growing demand for Bitcoin yield.
What is interesting to me is how based on these comments, institutional demand looks like a mirror image to crypto natives.
For crypto natives - stablecoins are all about yield.
Bitcoin for crypto natives - boring store of value that you don’t touch very often.
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