“Top US officials discussing issuing recommendations on stablecoins is part of a growing trend of global financial watchdogs clamping down on the digital assets sector after years of almost unrestrained growth. This trend is directly influencing the stability of cryptocurrencies such as Bitcoin, which dropped below $30,000, while Ether and Binance also came under selling pressure. The message to the market is clear - strengthen your infrastructure and risk management processes before it’s too late.

“While institutional involvement in crypto has been limited due to a lack of stable infrastructure, a number of banks including State Street and Citigroup have said they intend to provide more crypto services in the near future. My advice to banks that are interested in getting involved in the digital assets space is to make sure they work with the right provider, one that is regulatory compliant, battle-tested and conforms to Tier 1 regulated firm requirements as well as market best practice. Otherwise, they too could find themselves having to answer to regulators.”