These Challenges Affect Institutional Crypto Adoption Strategies (Survey)

A new survey by blockchain infrastructure provider P2P.org has revealed some challenges and trends affecting institutions’ crypto adoption strategies. He also highlighted the opportunities that institutions could explore to adapt to the evolving practices of the crypto industry.

The survey included the participation of more than 15 institutional players, with intermediaries, investment funds and venture capital funds accounting for 46%, 31% and 23% of respondents, respectively. It is worth noting that intermediaries in this context refer to companies that manage assets on behalf of others, while institutions as a whole are those with a large total value locked up.

Trends affecting institutional crypto strategies

According to results submitted to CryptoPotato, 33.4% of respondents said the biggest challenge their company faces is integrating new crypto performance products aligned with their risk tolerance. Another 13.3% revealed that regulatory compliance affects their ability to incorporate new products into their offerings.

In addition, 6.67% of participants said that it is difficult to find the right strategy for allocating crypto assets, while another 6.67% revealed that integrating multiple performance solutions at once has been a big challenge. Interestingly, 6.67% of respondents attributed their biggest challenge to custodians limiting product functionality, while the remaining 33.29% cited other challenges not described in the report.

P2P.org identified risk as a recurring theme during the interviews and was mentioned at several levels, including technology, operations and regulation. On the technology front, respondents insisted that smart contracts pose a risk to their organization’s security and reliability.

Challenges in Operations and Regulation

In the trades, respondents explained how certain blockchain mechanics could affect the movement of funds between industries. For example, withdrawing funds from staked tokens could make the assets unavailable for a time, limiting how quickly capital can be redeployed to other business areas.

On the regulatory front, participants revealed that one of their biggest challenges was integrating a new product that was in line with regulatory guidelines in their business region.

“The involvement of the legal and compliance team here is critical to assess the exact risk factor. As reported in one of the interviews, not properly assessing the regulatory layer can affect the resources allocated to a new product initiative , which could then be deemed unacceptable by regulatory authorities,” P2P.org said.

With regulatory requirements posing a significant challenge, these institutions face limitations in product integration and innovation.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato readers on Bybit – Use this link to register and open a FREE $500 position with any currency!