On July 29, in a preliminary interview for Cointelegraph China Great Bay Area International Blockchain Week, Derivative Bybit Exchange CEO Bing Zhu stated that the maturity of the derivatives market is the main reason why companies are moving to crypto.

Biggest concern for institutional investors
Zhou says the biggest challenge for any crypto-researching institution is the need for appropriate financial instruments to manage risk. Risk management is not available without an efficient and reliable derivatives market. He emphasized:

Derivative markets fulfill an important function to facilitate liquidity, and provide appropriate risk management tools and various product options. This is how I see cause and effect when it comes to this topic. ”

Although regulation plays only a small role in attracting institutions, Zhou also believes that the increased organizational interest is a positive development and a sign of the crypto industry as a whole. He added:

“As the level of play increases, the long-term ones that give users real value will be the biggest winners.”

Maturity of crypto and traditional finance
Zhu says that the recent increase in bitcoin prices is partly due to increased demand. This bodes well for an increasing number of institutional investors, just as supply fell after half of this year. He continued:

Trust in financial institutions also gives legitimacy and helps people see crypto as money. Continuous improvement of the crypto infrastructure will gradually give people the opportunity to earn more digital currencies, which in turn will give them more value. It can not be a single incident where everyone suddenly agrees that “Encryption has reached an important position. But when we look at this point in the future, we can conclude that the preparation process has somehow already begun. ”

Unlike the world of traditional finance, cryptocurrencies offer people an alternative path. This is due to a combination of innate and systemic benefits, says Chu. It is important to note that traditional cryptography and finance are not completely opposite forces. He noted that:

“Financial institutions already facilitate access to cryptocurrency through Fiat portals and offer custody services. With widespread adoption and increased maturity of cryptocurrencies, we have to see more areas of convergence and greater overlap between the two sectors.

Zhou has also unveiled stock exchange plans to open more pairs such as ETH / USDT, BCH / USDT, LTC / USDT, XTZ / USDT and LINK / USDT for derivatives trading in the near future.

Source: CoinTelegraph