Clearer rules and improved technology are accelerating the convergence of traditional finance (TradFi) and decentralized markets, driving established institutions into areas such as crypto derivatives, according to panelists at Consensus Hong Kong.

“Regulation is really important. It gives you the rails that you need to operate in,” said Jason Urban, global co-head of digital assets at Galaxy Digital (GLXY), who took part in the “Ultimate Deriving Machine” panel.

Other speakers, including executives from exchange operator ICE Futures U.S., crypto prime brokerage FalconX and investment company ARK Invest highlighted how developments in the U.S., such as the 2024 approval of spot crypto exchange-traded funds (ETFs) and harmonization between…