The crypto ecosystem has come a long way since the implosion of Sam Bankman Fried’s FTX destroyed billions in investor wealth in 2023. However, the industry as a whole needs to more to become bullet proof, said TradFi experts at the “Views From Wall Street to Crypto” event held at Consensus Hong Kong on Wednesday.
“You have traditional players who have come into the space now, especially for us, most of our trading happens of exchange settlement, where you actually keep your assets on custodians while you are able to trade on exchanges,” Gautam Sharma, CEO and CIO of Brevan Howard said. “So the technology has come far ahead in terms of the last 18 months since then, [but] there’s more work to do.”
Sharma stressed the need for 24/7 risk management, including market, counterparty, and credit risks.
Counterparty risk refers to the possibility of one party involved in a transaction failing to meet its obligation, resulting in a loss to the…
