Custodia Bank CEO warns of TradFi firms facing first crypto winter — TradingView News
Institutional investors from the traditional finance world lack the updated risk tolerance models to deal with crypto and may face trouble during the next bear market, according to Custodia Bank CEO Caitlin Long.
“Big Finance is here in a big way, and that seems to be driving this cycle. I suspect it will continue to drive this cycle,” Long told CNBC at the Wyoming Blockchain Symposium on Friday.
Long said that legacy financial institutions are comfortable taking on large amounts of leverage due to fail-safes built into the system, like discount windows and other “fault tolerances.”
However, she warned that these advantages disappear in crypto, where settlement occurs in real-time. The CEO said that the mismatch between crypto…
