Coinbase CEO Brian Armstrong discussed two catalysts that will attract institutional investors to the crypto industry.
Armstrong stated that his company is trying to attract investors in the crypto space.
Coinbase CEO Aims To Attract Institutional Investors
Coinbase CEO Brian Armstrong stated that some of the institutional investors they contacted invested part of their portfolios in digital assets.
“There are some sovereign wealth funds out there that are doing this. We’ve completed these deals, like BlackRock, to get more money flowing.”
Armstrong stated that if regulatory clarity is achieved, more institutional investors will be involved in the sector.
“What is the main catalyst that will cause this to happen? The biggest thing on my mind is regulatory clarity. When I talk to institutional investors, they always bring this up. The good news is we’re finally starting to see regulatory clarity. If you want, we can talk about what it is. I think we’re going to attract more money in the next year or two with more regulatory clarity.”
A second catalyst Armstrong noted was the improved scalability of blockchains.
“The first blockchains: Bitcoin had about seven transactions per second, while Ethereum was doing 25. PayPal also processes about 500 transactions per second. Visa is 4000 transactions per second. That’s why we need a few big “orders” to reach Visa’s level”
Coinbase CEO said that with recent developments such as the Ethereum Merge upgrade, crypto is on its way to having enhanced scalability:
“It’s been an incredible technical feat, and with that I think the parts they’re going to release and the like will only add to that.
Other blockchains like Solana are also working on scalability. We see a good focus on this issue in the industry right now.”
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