Look Past the Clouds, The Future for Digital Assets is Bright

Over the last one to two months, we’ve seen material weakness in both equity and crypto markets around the world, creating a cloudy picture for many investors. In particular, the storm surrounding the collapse of Terra Luna and UST is a welcome reminder that although the digital asset ecosystem continues to deliver amazing levels of innovation and ingenuity, you can never afford to let your guard down. During the run on Luna and UST, some USD40 billion in market capitalisation was erased in short order, and this understandably had a meaningful impact on broader market sentiment. 

At BC Group and OSL, our strategy remains unchanged: deliver a market-leading service to institutional and professional investor customers who highly value regulation, security and compliance. 

As part of this strategy, we place heavy emphasis on a responsible approach to risk management, and our business is laser focused on providing a high-quality platform for our clients to store and trade digital assets. 

Whilst we actively embrace innovation as the lifeblood of our industry, we’ve deliberately adopted a careful approach when adding support for different assets on our platform. At the same time, we take great care to be compliant in accordance with relevant regulatory requirements in the markets in which we operate. With respect to Luna and UST specifically, whilst both had garnered significant interest and optimism, we’ve had no exposure to these assets. As to our broader stance on investing in digital assets, we always encourage clients to take a sensible and diversified approach to ensure that they’re not overly exposed to major cyclical events. 

Despite recent market events, we’re more confident than ever that digital assets are here to stay. Talent and infrastructure investment into the sector continues to accelerate in tandem with technological innovation. In addition, regulation continues to evolve, and while there’s more work to do, the landscape is more robust and more clear than ever before. This regulatory evolution, combined with the digital asset industry’s innovation and infrastructure improvements, provides a long-term tailwind that will create significant step changes and efficiencies in the market going forward. 

Put simply, beyond the clouds, the future is bright.

An increasing number of large players across industries have also recognized this, and have either entered, or are readying themselves to enter the digital asset market. This trend has continued despite recent weakness, and reinforces our confidence and commitment to our strategy. There will undoubtedly continue to be bumps along the way as we move through various cycles and market developments. For BC Group and OSL, it’s therefore critical for us to stay vigilant, but also resolute as we continue to execute our mission to lead the regulated, institutional evolution of the digital asset market.