In the tech world, the well known ethos is to move fast and break things. That doesn’t work for regulated institutions. But disruption is another matter. At the Point Zero Forum six weeks ago, executives form the traditional finance (TradFi) digital asset sector, including SIX Digital Exchange, SBI and JP Morgan, discussed the key challenges for institutions building the next genration of financial infrastructure.
On the risk management side, David Newns, CEO of SIX Digital Exchange (SDX), compared TradFi to NASA and its latest SLS rocket, which costs billions every time it launches. It’s unacceptable for it to explode on the launchpad and a reputational risk for NASA. In contrast, SpaceX’s Starship 1 is in the move-fast-and-break-things camp, and Musk is happy simply if it gets off the pad.
While people are losing billions of dollars in the experimental DeFi world owing to smart contract vulnerabilities, in TradFi it’s unacceptable to lose a single token, never mind thousands or millions. In a regulated environment, “it has to work the first time. Every single time,” said Newns.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
