Are TradFi Institutions Prepared for the Next Crypto Winter?
Caitlin Long, CEO of Custodia Bank, has raised a pretty important issue: if traditional finance (TradFi) doesn’t change much, they’re gonna have some serious liquidity problems when the next crypto winter hits. So, let’s break down what that could mean.
The Risks TradFi Faces in Crypto Winters
We’ve all seen how fast things can move in crypto, right? The shift to real-time blockchain markets doesn’t make things easier for TradFi institutions. Caitlin points out that the way these two worlds operate is so mismatched that TradFi is at risk of some big liquidity woes. As more institutional players dive into the crypto scene, they need to be fully aware of potential volatility and market risks.
Remember what a crypto winter looks…
