Bridging Traditional and Decentralized Finance with 21Shares
Nov 9, 2023
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Ophelia Snyder and Eliézer Ndinga from 21Shares join ARK Director of Digital Assets to discuss bridging traditional finance with crypto, emphasizing regulations, education, and the synergy between traditional and decentralized finance. They explore the challenges of standardization and the significance of understanding regulations. They also discuss the different approaches to regulating cryptocurrencies and highlight the successful regulatory framework in Switzerland.
21Shares aims to bridge the gap between traditional finance and cryptocurrency by providing accessible and user-friendly investment products.
21Shares recognizes the need for reliable insights and education in the crypto industry, offering in-depth research and content to help investors navigate the complexities of the space.
Regulations are crucial in the crypto industry, providing clarity, accountability, and fostering innovation, with harmonization and standardization globally being essential for attracting institutional investors.
Deep dives
The Founding of 21Shares and Its Mission
21Shares was founded with the purpose of solving a problem for their moms: providing an accessible and user-friendly platform for investing in crypto. They wanted to bridge the gap between traditional finance and cryptocurrency by offering products that could be easily accessed through existing bank or brokerage accounts. Starting with a simple product for their moms, 21Shares expanded and now manages about $1.5 billion in assets primarily in Europe and the Middle East. Their mission is to help people get comfortable with the crypto space and provide them with instruments to access this technical aspect of finance.
The Importance of Education and Insights
21Shares recognizes the need for reliable insights and education in the crypto industry. They believe that there is a significant gap between news and insights, where news provides information but lacks the analysis and context to differentiate what is true and valuable. To bridge this gap, 21Shares focuses on providing in-depth research, real-time dashboards, webinars, and content that give investors a better understanding of the crypto asset class. They emphasize the importance of insights in navigating the complexities of the crypto space and keeping up with the rapidly evolving industry.
The Role of Regulations and Standardization
Regulations play a crucial role in the crypto industry, as they help establish a framework and ensure accountability. 21Shares believes that regulations are not static but evolve over time based on historical context and accumulated human knowledge. While regulations can be seen as a barrier for some, they also provide much-needed clarity and de-risk doing business in the crypto sector. Harmonization and standardization of regulations globally are essential for fostering innovation and attracting institutional investors. Efforts like the recent implementation of MICA in the European Union show promising steps towards a more unified regulatory system.
The Next Market Cycle and Future Innovations
The next market cycle in the crypto industry is expected to be different from previous cycles due to the increased maturity of participants and a more methodical approach towards investments. There will be a greater emphasis on building solid and reliable products, as well as a reduction in speculative behavior. The market will see more innovation and adoption of technology, such as smart contracts built on Bitcoin and cross-industry applications leveraging blockchain. 21Shares also plans to expand its product suite, provide more options for investors to customize their portfolios, and continue their commitment to research and insights in order to navigate the evolving crypto landscape.
Conclusion
Overall, 21Shares is focused on simplifying access to the crypto space, educating investors, and fostering innovation through regulatory compliance. They aim to bridge the gap between traditional finance and cryptocurrency, providing reliable products and services while ensuring accountability and transparency. With their expansion into the American market and ongoing commitment to research and insights, 21Shares is well-positioned to drive the adoption of crypto assets and contribute to the growth of the industry.
On today’s episode, ARK Director of Digital Assets Yassine Elmandjra sits down with special guests Ophelia Snyder, the president and co-founder of 21Shares, and Eliézer Ndinga, the head of research at 21Shares. Together, they dive deep into the world of crypto, education, and the exciting developments happening in the industry. Join us as we explore how 21Shares is bridging traditional finance with crypto, discussing the importance of regulations, the need for specialized research, and the future of this rapidly evolving asset class.