[Digital Today reporter Chi-gyu Hwang] Guy said the recent embrace of the term “digital assets” by Wall Street and governments is essentially a signal of digital transformation, like companies’ shift to cloud services. Guy is a general partner at a16z Crypto, the crypto arm of Silicon Valley venture capital firm Andreessen Horowitz (a16z).
He said this in a recent post on the company website.
He said that while the financial industry appears digitised on the surface, it actually runs on an outdated structure in which systems are fragmented and heavily dependent on manual reconciliation and paper-based processes.
He stressed that the main reason large financial institutions adopt blockchain is not crypto ideology such as decentralisation or financial sovereignty, but to resolve trust and collaboration bottlenecks that arise when multiple institutions work together. He added that blockchain can reduce counterparty risk and ensure fair trade sequencing and best execution.
Chi-gyu Hwang
delight@d-today.co.kr