One of the world’s biggest auditors has put a newly bullish case for cryptocurrency’s ascent to a “full-fledged asset class.”
Netherlands-based ‘Big Four’ auditor KPMG released a bullish report on cryptocurrency Nov. 15. The report argues that institutional investors must join the industry for it to “realize its potential.”
The report, dubbed ‘Institutionalization of Cryptoassets,’ focuses on why and how institutional investors should enter cryptocurrency, along with “challenges” the process faces and under what circumstances crypto could become a “full-fledged asset class.”
“Cryptoassets have potential. But for them to realize this potential, institutionalization is needed,” the report’s authors argue, continuing:
“Institutionalization is the at-scale participation in the crypto market of banks, broker dealers, exchanges, payment providers, fintechs, and other entities in the global financial services ecosystem. We believe this is a necessary next step for crypto to create trust and scale.”
As Cointelegraph previously reported, KPMG has traditionally focused on risk management of blockchain technology, adopting a shrewd outlook on cryptocurrency in its early years, along with the other major auditors.
The tone of the latest publication represents a slight pivot meanwhile, the company notably avoiding the ‘crypto-bashing’ narrative repeated this month by entities including the European Central Bank and Bank of International Settlements.
For KPMG, crypto is a “big deal” and “worth paying attention to.”
“[C]rypto continues to garner both good and bad press, and the debate between supporters and detractors is far from settled,” the report continues:
“In 2018, we are seeing a wave of new entrants in the market such as security token platforms, stablecoins, and even established financial services institutions that are launching crypto products and services. Cryptoassets are now impossible to ignore.”
Various other sources have also stood by their prediction that cryptocurrency’s fortunes will reverse upwards upon the entry of institutional investors, the start of which is scheduled for next month with the launch of the Intercontinental Exchange’s (ICE) trading platform Bakkt.
KPMG report’s release coincided with a sudden rapid decrease in the price of all major cryptocurrencies, in part as a result of uncertainty over the future of major crypto Bitcoin Cash, currently the fourth-largest crypto asset by market cap.