The 132-year-old Swiss asset management firm, Julius Baer, promises to offer contact with cryptocurrencies and decentralized finance (DeFi) because of its high internet-worth clients.
The firm’s Chief executive officer Philipp Rickenbacher confirmed the transfer to the cryptocurrency space throughout his receiving the company’s strategy update for the following 3 years.
Rickenbacher noted the recent slump within the cryptocurrency markets presented a watershed moment because of its clients to achieve contact with the nascent asset class.
“It is possibly only at that very instant that we’re witnessing a bubble-burst moment from the crypto-industry and everyone knows what went down following the us dot-com bubble burst 3 decades ago. It led the way for that emergence of the new sector that indeed transformed our way of life.”
Rickenbacher came parallels using the two sectors, noting that cryptocurrencies and DeFi contain the same potential because the Us dot Com bubble, which birthed the web as well as other core services that now that we know and employ.
“They will transform the financial sector within the next 10 years and it’s important for all of us to achieve a powerful foothold in this region. That is why it’s precisely the right moment to purchase the lengthy-term potential of digital asset technology.”
The Chief executive officer highlighted the job being carried out by various central banks to produce central bank digital currencies (CBDCs) along with the recognition of cryptocurrency exchanges speeding up regulation and developing a arena with the field of traditional finance.
Rickenbacher was particularly enamored with the potential for the DeFi sector — that has in recent days been underneath the spotlight because of the calamitous collapse from the Terra ecosystem.
The Julius Baer Chief executive officer believes the area has witnessed untamed innovation clash with regulatory reality. Although some critics aren’t offered on the potential for DeFi, Rickenbacher believes the area will heavily influence the way forward for finance:
“On another hands, it is also where traditional, cost-heavy and sophisticated areas of that old banking system are today just re-written having a couple of lines of code. As technology and traditional finance ultimately will converge, there’s huge possibility to really transform our value chains.”
The firm will start to offer advice and research around the cryptocurrency space to the clients while supplying accessibility space by integrating cryptocurrencies into its wealth management choices.
Julius Baer also promises to work with cryptocurrency providers and entrepreneurs in the intersection between fiat and crypto while making certain regulatory compliance because of its clients.