Crypto assets, once dismissed as the Wild West of finance, have found their way into institutional investment strategies. Per a recent survey by Coinbase and EY-Parthenon, 86% of institutional investors surveyed said they had exposure to digital assets or planned to make allocations to cryptocurrencies in 2025.
Besides, thanks to the evolving regulatory landscape worldwide, institutions are increasingly viewing cryptocurrencies as a legitimate component of a balanced investment strategy.
In an exclusive interview with CryptoNews, Gadi Chait, Investment Manager at Xapo Bank, shares the current environment of institutional crypto adoption and the myriad opportunities it presents for investors and financial institutions alike.
Traditional Institutional Crypto Adoption Barriers are Falling Away
With the crypto market now exceeding $3 trillion in value, the crypto adoption by institutional investors has gained significant traction.
Chait pointed out that historically, institutional investors have been deterred by several factors, particularly crypto volatility concerns.
Further, meme coins fame and their “hype over substance” has discouraged widespread adoption as confidence erodes and distracts from genuine utility.
However, he adds that with more awareness and research, investors are understanding the varying degrees of risk and utility.
“Increased legitimacy in the eyes of policymakers and increased retail adoption fueled by genuine use cases rather than price speculation have encouraged recent institutional adoption.”
Crypto’s massive expansion is also transforming the political environment, with more politicians heading for a change for mainstream adoption through regulation.
Trump’s Comeback “Massively Buoyed” Confidence for Crypto Firms
President Trump has signalled a more crypto-friendly approach to regulation, the latest being the world’s first White House Crypto Summit. In addition, Trump signed an executive order to establish a strategic reserve of cryptocurrencies by using tokens already owned by the government.
The recent US election and Trump’s comeback has “massively buoyed confidence for digital asset firms in the US,” Chait noted.
This is because the previous US SEC, under Gary Gensler, imposed aggressive enforcement actions on crypto firms, including Gemini, Ripple and Robinhood. The regulator recently noted that it has dropped all the cases against these firms, without any charges.
Additionally, official endorsement by the executive branch reassures both retail and institutional investors that “crypto is here to stay,” he added.
“With fewer regulatory grey areas, banks and asset managers can more confidently offer crypto products.”
Institutional Crypto Interest From Major Financial Institutions Increase
According to a recent report, major financial institutions, including Morgan Stanley and RBC, are looking to win more crypto businesses.
Chait said that the interest from these major financial players “is indicative of a broader trend associated with the institutional adoption of digital assets.”
“Traditional finance is slowly waking up to crypto’s call and is vying for a piece of the pie.”
Further, Bitcoin’s recent surge to over $100,000 and the promise of pro-crypto policies have attracted “institutional interest and strengthened Bitcoin’s future,” he added.
“Institutional interest continues, infrastructure is maturing, and crypto-friendly policies are on the horizon.”
Xapo Aims to be “Crypto-First,” Says Chait
Established in 2013, the private bank has been “one of the first Bitcoin custodians,” said Gadi Chait. Last week, Xapo announced access to Bitcoin-backed lending that supports in long-term Bitcoin holding.
Speaking about the time that traditional banks take to adopt cryptos, Chait noted that “Xapo will always be crypto-first.” He added that traditional banks still face regulatory uncertainty and internal skepticism that have hindered their ability to keep pace with the surging consumer demand for crypto-enabled banking services.
“This hesitation is evident in the actions of various UK high street banks in recent years, blocking payments to and from major crypto exchanges. Unlike traditional banks, Xapo will always be crypto-first.”
The post Interview: Xapo Bank Executive Talks on Expanding Institutional Crypto Adoption, Says “Crypto is Here to Stay” appeared first on Cryptonews.
https://cryptonews.com/exclusives/interview-xapo-bank-executive-talks-on-expanding-institutional-crypto-adoption/
