At the Capital Pioneer Digital Assets Summit, Bitwise’s Ray Dillet led a discussion demystifying digital assets and shifting the narrative beyond speculation toward real-world utility.
As the environment of digital assets is rapidly changing, new technology can seem daunting. Whether it’s JP Morgan offering bitcoin access to clients, or State Street creating its own dedicated digital assets unit to integrate blockchain into its digital transformation strategy, it’s becoming clear: digital assets are rapidly evolving.
In today’s financial environment, digital assets are reshaping finance by allowing faster, cheaper and more secure transactions while opening new ways to invest and manage assets.
To help demystify digital assets, Capital Pioneer partnered with Bitwise, a leading digital asset management firm specialising in crypto ETPs, ETFs, index funds, and other digital asset investment solutions.
On October 6th, at the Capital Pioneer Summit, Ray Dillet, head of financial institutions at Bitwise hosted an exclusive roundtable, discussing what institutional adoption really means for investors, businesses and the future of finance.
The conversation started by highlighting the relationship between digital assets and cash.
“Digital assets won’t replace cash but will become part of it,” he said.
Cyril Delamare, chief growth officer at Fund Bank, responded by outlining three key stages of digital assets: “speculation and innovation, maturity, and moving towards infrastructure.”
Delamare argued that digital assets aren’t just speculative tools, shifting the narrative to utility.
“Digital assets are like the API to finance,” he said.
Dr Nizar Atrissi, CIO at Tamar Capital argued that in every wave of innovation, some see the potential early and adopt it, and others then embrace the technology. He proposed that the same thing is happening with digital assets.
“Somebody will be innovative and understand the technology, then everyone else will move there,” he said.
Atrissi’s point about early adopters leading the way is echoed by Dillet’s emphasis on simplicity.
Dillet emphasises the simplicity of digital assets, and links it to the broader point that every process in a business can be improved, despite the apprehension that many people feel towards digital assets.
“Crypto is just tech… the speed and pace of change is scaring people,” he said.
The technology behind digital assets can be difficult to grasp, which is why breaking down its complexities and making the language more accessible can help people understand how these tools are being used, according to Mikaela Blowling, senior vice president at Third Bridge.
“It’s hard for people to get their head around the technology,” she said.
While the technology could feel overwhelming, the conversations surrounding digital assets can focus too much on the technical side, rather than the real-world impact they can have, according to vice president at State Street, James Redgrave.
“People talk more about the actual technology rather than the outcomes that the tech can have,” he said.
Dillet goes on to address the negative reputation surrounding crypto but leads with the fact that digital assets and their uses cannot be ignored.
“You either ride with it or you collide with it,” he said.
With the rise of digital assets, companies are becoming apprehensive about utilising them in their businesses. Most organisations are reluctant to use digital assets in their business structures, according to Delamare.
“Most organisations are scared of touching their existing technology,” he said.
Redgrave elaborated on this, by highlighting the implications of adapting new technologies, such as reducing headcount. Mikaela agreed with this, stating that she believes there is a risk that the company may not deliver the same product that it used to.
“One risk of adopting new tech is that a company changes too much and doesn’t deliver the same product,” she said.
By simplifying the way digital assets are discussed and emphasising their benefits, more people will understand what they can achieve. This can boost adoption across all areas of finance, according to Dillet.
