Wall Street’s largest banks are tapping into the crypto market through derivatives

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Episode 51 of Sea­son 4 of The Scoop was record­ed remote­ly with The Block’s Frank Chap­ar­ro and James Stick­land, CEO of Elwood Technologies.

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Elwood Tech­nolo­gies — an Alan Howard backed dig­i­tal asset plat­form that is build­ing trad­ing infra­struc­ture for insti­tu­tion­al investors — closed a $70 mil­lion Series A last month co-led by Gold­man Sachs and Dawn Capital.

In this episode of The Scoop, Elwood CEO James Stick­land sits down with host Frank Chap­ar­ro to dis­cuss Elwood’s recent fundraise, and to pro­vide a clos­er look at the insti­tu­tion­al activ­i­ty that is occur­ring in the cryp­to market.

Accord­ing to Stick­land, insti­tu­tion­al expo­sure to cryp­to “is more on the deriv­a­tives end of the mar­ket,” large­ly because of the lucra­tive spreads:

“Cryp­to deriv­a­tive spe­cial­ists are still able to make spreads they can dri­ve bus­es through. Which is fan­tas­tic for them, which is obvi­ous­ly there­fore cre­at­ing FOMO, and with the syn­thet­ic nature and capa­bil­i­ty of it, is dri­ving that real appetite.”

While deriv­a­tives are, for now, the extent of many insti­tu­tions’ cryp­to expo­sure, Stick­land claims that reg­u­la­to­ry clar­i­ty regard­ing dig­i­tal assets will “real­ly allow engage­ment on spot and hold­ing on bal­ance sheet.”

Stick­land views the com­bi­na­tion of com­ing reg­u­la­to­ry clar­i­ty along with more robust mar­ket infra­struc­ture as hav­ing a pow­er­ful impact on the mar­ket in the long run:

“Get­ting great prime, get­ting great cred­it approved facil­i­ties, and the reg­u­la­tor mak­ing a call — that plus hav­ing some real sta­ble infra­struc­ture, that lights this thing up beyond all belief.”

Dur­ing this episode, Chap­ar­ro and Stick­land also discuss:

  • Mar­ket liq­uid­i­ty conditions
  • The evo­lu­tion of neobanks
  • Cryp­to ‘dark pools’

This episode is brought to you by our spon­sors Fire­blocksCoin­base Prime & Cross Riv­er
Fire­blocks is an enter­prise-grade plat­form deliv­er­ing a secure infra­struc­ture for mov­ing, stor­ing, and issu­ing dig­i­tal assets. Fire­blocks enables exchanges, lend­ing desks, cus­to­di­ans, banks, trad­ing desks, and hedge funds to secure­ly scale dig­i­tal asset oper­a­tions through the Fire­blocks Net­work and MPC-based Wal­let Infra­struc­ture. Fire­blocks serves over 725 finan­cial insti­tu­tions, has secured the trans­fer of over $1.5 tril­lion in dig­i­tal assets, and has a unique insur­ance pol­i­cy that cov­ers assets in stor­age & tran­sit. For more infor­ma­tion, please vis­it www.fireblocks.com.

About Coin­base Prime
Coin­base Prime is an inte­grat­ed solu­tion that pro­vides insti­tu­tion­al investors with an advanced trad­ing plat­form, secure cus­tody, and prime ser­vices to man­age all their cryp­to assets in one place. Coin­base Prime ful­ly inte­grates cryp­to trad­ing and cus­tody on a sin­gle plat­form, and gives clients the best all-in pric­ing in their net­work using their pro­pri­etary Smart Order Router and algo­rith­mic exe­cu­tion. For more infor­ma­tion, vis­it www.coinbase.com/prime.

About Cross Riv­er
Cross Riv­er is pow­er­ing today’s most inno­v­a­tive cryp­to com­pa­nies, with bank­ing and pay­ments solu­tions you can rely on, includ­ing fiat on/off ramp solu­tions. Whether you are a cryp­to exchange, NFT mar­ket­place, or wal­let, Cross River’s API-based, all-in-one plat­form enables bank­ing as a ser­vice, ACH & wire trans­fers, push-to-card dis­burse­ments, real-time pay­ments, and vir­tu­al accounts and sub­ledgers. Request your fiat on/off ramp solu­tion now at crossriver.com/crypto.

© 2022 The Block Cryp­to, Inc. All Rights Reserved. This arti­cle is pro­vid­ed for infor­ma­tion­al pur­pos­es only. It is not offered or intend­ed to be used as legal, tax, invest­ment, finan­cial, or oth­er advice.

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