The crypto industry is once again being put to the test. FTX/Alameda and its collateral damage are leaving their mark and calling regulators around the world to action. Pirro Morandi, Head Client Relationship Management & Sales at InCore Bank shares his outlook for the digital asset space.
The fall of what was once the second largest crypto exchange destroyed the confidence of many market participants - especially within the institutional sector. While retail investors are withdrawing their cryptocurrencies from centralized exchanges, banks are once again increasingly shying away from entering the industry. But this short-term setback should not overshadow the long-term growth trend that remains strong, according to the InCore Head Client Relationship Management & Sales.
CVJ.CH: Mr. Morandi, do you still believe in the future of digital assets despite negative headlines?
Pirro Morandi: Absolutely. You could read a lot about the renewed crypto winter, the associated price losses, the historic bear market and the Etherum merge, which was received positively by the majority - but trading volumes have not fallen to the same extent globally. At InCore Bank, the ice age has definitely not broken out. We are convinced that digital asset markets will recover. Around 22 banks have approval for digital asset banking or are in the approval process with FINMA. As a pure B2B bank, we are the ideal partner for innovative banks worldwide and our order books are well filled.
InCore Bank is considered a traditional transaction bank - at the same time you offer digital asset banking. No contradiction?
No, not at all. In addition to traditional B2B banking services, we have also been able to position digital assets extremely successfully in the market. As an innovative B2B bank, InCore Bank has always consistently driven the expansion of new business areas. And our success proves us right: more and more reputable financial institutions are opting for our digital asset services in addition to traditional banking services. Through the services provided by InCore Bank, our clients can trade cryptocurrencies and benefit from a highly secure custody solution based in Switzerland. A bank as a trusted partner is a natural choice for trading and custody of digital assets.
What sets InCore Bank apart from its Swiss competitors?
The recipe for success includes an experienced team with over 100 specialists, successful implementations and satisfied customers. But also innovative strength: In 2020, we were the first traditional Swiss bank ever to receive FINMA approval for banking services with digital assets and to recognize the trend before others. Since then, we have invested a lot in opening and processing the market as well as in the security of our systems. We have set the right course and continuously developed our services.
What are you specifically thinking about?
For example, the launch of our 24/7 online trading platform. Or the CRYSP "create your structured products" solution, where banks can offer investment products under their own name: a hybrid model with cost-saving capital raising, as traditional investors and digital asset investors can be addressed simultaneously.
Stricter regulations are being called for all over the world. What is your position on this issue between innovation and safety?
More legal and investment certainty strengthens trust and acceptance in digital assets - which is why we welcome the efforts of the Swiss legislator. We do not consider digital assets as a detached service, but as an additional asset class. Our clients know that their customer deposits with InCore Bank are protected in the event of bankruptcy. They consciously choose us as a regulated Swiss bank because we offer them this security.
How complicated is the integration of digital assets into the core banking system?
With us as a partner, handling becomes as easy as with traditional assets and this independent of the existing core banking system. Of course, we have a lot of experience with Finnova, but we can also apply what we have learned there to other systems such as Avaloq or Temenos. The existing set-up can be used with very little integration effort. We have been working intensively on digitalization at the forefront for years and can look back on many successful implementations with satisfied customers.
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Any advice for banks that are still cautious about digital assets?
It's "Time to set the stage!" You should address this issue now and position yourself with foresight to be live in the next bull market. I recommend relying on the right B2B partner instead of doing everything on your own! (laughs)
What is coming next for InCore Bank?
In addition to good market access and attractive conditions for our customers, we are also focusing on new topics such as staking or tokenization. The latter has the potential to revolutionize the real economy - but as a product there is still little demand. The WEF, for example, estimates that 10% of the global GNP will be tokenized before the end of this decade.
Pirro Morandi is responsible for global client services, new business development and expansion of existing relationships at InCore Bank. Pirro Morandi has many years of professional experience in Private Banking, Investments and Financial Markets.
