Breanne Madigan, Head of the Global Institutional Markets Team at Ripple, recently discussed the various challenges faced by the blockchain and digital assets industry, while also addressing how to approach policy implications with regulators.
At the OECD Global Blockchain Policy Forum in Paris, Madigan held deliberations with various industry professionals, covering topics based on developments in the digital financial markets and the sustainable application of Distributed Ledger Technology.
Madigan stated that several financial services were still involved with paper documentation, even after a move to digital format was widely evident. The implementation of DLT in these traditional institutions is necessary to facilitate innovation, she said.
At the event, examples were put forward by Vanguard’s Head of Blockchain Strategy about current testing of blockchain to automate index fund-related activities. Further, the CEO of ISDA went on to reveal that DLT was currently utilized in the organization to provide common data structures for derivatives, and improving interoperability between different firms and platforms.
Talking about XRP as a “bridge currency,” Madigan re-iterated Ripple’s vision of bringing together financial institutions and technology-based companies for the settlement of cross-border payments. She said,
“Using digital assets as a bridge currency can efficiently free up this trapped capital and make the process of sending money cross-border faster, less expensive, and more scalable, by providing liquidity on demand.”
From the perspective of institutional adoption, Madigan spoke about promising signs that were prevalent in the current market space. The movement and introduction of institutional brands entering the space including the likes of Fidelity, Bakkt and TD Ameritrade indicated that the eco-space was maturing, with more financial products and derivatives getting developed in the crypto-asset industry.
However, a lack of clarity in terms of regulations and guidance is still a major concern, she said. The U.S government continues to keep a tight lid on the do’s and don’ts for the cryptospace as regulatory constraints may see potential companies and innovators drift towards regions with a clearer framework. She added,
“No doubt, as the industry continues to mature, governments and policy makers are feeling the urgency for more regulatory clarity. The U.S. and other pro-innovation countries can set the tone for the rest of the world to follow. And we hope that they will.”
