Trading Tech Insight: The evolution of trade finance as a digital asset

The emergence of digital assets such as cryptocurrencies as a means of achieving investment returns is gathering pace amongst bank and non-bank trading institutions. This comes at a time when cryptocurrencies face a wave of regulatory scrutiny. Regulators and policymakers see them as fraught with high risks and suffering from staggering levels of volatility. Recently, the Basel Committee on Banking Supervision (BCBS) proposed tough capital requirements for banks that hold crypto assets due to financial stability concerns. China’s ban on all transactions of cryptocurrencies has since fuelled the uncertainty and speculation over their future.

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All this hasn’t stopped highly regulated financial institutions assessing cryptocurrencies from an investment perspective – but why not? The answer is very simple: a hunt for yield.
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