#Cryptocurrency #Abu Dhabi #Bybit #UAE #Digital Finance

Bybit's Yoyee Wang on Institutional Crypto Adoption

At the HSC Asset Management high-level conference held in Abu Dhabi, key discussions centered around the factors driving institutional adoption of cryptocurrency. Yoyee Wang, the Head of Business-to-Business at Bybit, underscored the critical roles of custody design, capital efficiency, and regulatory clarity during her presentation.

The event gathered policymakers, asset managers, and technology leaders to explore the latest investment trends, encompassing digital assets and artificial intelligence, providing a platform for meaningful exchange on future financial market structures.

The Role of Custody in Institutional Investment

Wang participated in a panel titled "The Future Stack of Digital Finance Investments, Transactions, Custody, and the New Market Architecture," moderated by David Gevorkian from TWO23 Group. In the evolving landscape of digital finance, discussions about custody often revolve around risk management and operational efficiency—two crucial concerns for institutional investors. "When discussing custody, the primary focus is on security, transparency, and asset control to mitigate risks. However, custody’s purpose extends beyond mere asset safeguarding; the central issue is how institutions can enhance their trading efficiency while managing inherent risks," Wang explained.

With the emergence of custodian and off-exchange settlement models, there is a strong focus on optimizing capital usage. Wang pointed out, "As various custody arrangements, such as multi-party setups or off-exchange solutions, become prevalent, one of the key challenges for the industry is improving capital efficiency. The objective is to boost capital efficiency along with ensuring superior security and reducing counterparty risks related to exchanges."

Importance of Regulatory Clarity

A major takeaway from Wang’s address was the significance of regulatory clarity in empowering institutional participation within the crypto landscape. She highlighted the progressive regulatory environment in the UAE as a prime example. "Bybit chose to establish its headquarters in the UAE due to the region's increasingly clear regulations. This clarity is a cornerstone for technological innovation and fosters confidence among global institutions. Constructive dialogue among regulators, market participants, and tech providers is paramount for sustainable market growth," Wang stated.

Tokenized Real-World Assets and Market Standards

In a broader context, Wang also discussed the rising interest in tokenized real-world assets (RWAs). She illustrated Bybit’s efforts to facilitate access to regulated RWA products through partnerships with financial institutions. "We have successfully launched tokenized offerings in collaboration with Qatar National Bank and UBS, aiming to provide clients with exposure to underlying money-market instruments. These innovative structures not only allow traditional returns within a digital asset framework but also enhance liquidity and accessibility," she said.

However, Wang cautioned about the current inconsistencies within the wider RWA market, noting, "The landscape is varied, presenting a mix of structures and standards. Our priority lies with products that are well-structured, governed by appropriate oversight, and designed for trading, thereby supporting liquidity in secondary markets."

Encouraging Broader Institutional Engagement

Wang concluded her remarks by urging institutions to adopt a holistic perspective regarding digital assets, encouraging them to view these assets beyond their financial value. "We encourage institutions to consider the broader blockchain ecosystem, engaging not just as investors in a specific asset class but exploring participation in liquidity provisioning, agency trading, or technology collaborations, tailored to their own business models and risk appetite," she advised.

Bybit, the second-largest cryptocurrency exchange globally by trading volume, continues to redefine and facilitate a more inclusive digital financial environment. With an emphasis on secure custody, diverse offerings, and enhanced user experiences, Bybit is strategically positioned to empower its community of over 80 million users as they explore the possibilities within the crypto space. To learn more, visit Bybit.com.