These challenges affect institutional cryptocurrency adoption strategies (survey)

A new survey by blockchain infrastructure provider P2P.org has revealed some challenges and trends affecting institutions' cryptocurrency adoption strategies. It also highlighted opportunities that institutions could explore to adapt to changing practices in the crypto industry.

The survey had the participation of more than 15 institutional actors, with intermediaries, investment funds and venture capital funds being 46%, 31% and 23% of the respondents, respectively. It is worth mentioning that intermediaries in this context refer to companies that manage assets on behalf of others, while institutions as a whole are those with large total value locked.

Trends Affecting Institutional crypto Strategies

According to the results sent to cryptopotato33.4% of respondents said the biggest challenge their company faces is integrating new crypto yield products aligned with their risk tolerance. Another 13.3% revealed that regulatory compliance affects their ability to incorporate new products into their offering.

Furthermore, 6.67% of participants said that it is difficult to find the right strategy to allocate crypto assets, while another 6.67% revealed that integrating multiple performance solutions at once has been a major challenge. Interestingly, 6.67% of respondents attributed their biggest challenge to custodians limiting product functionality, while the remaining 33.29% cited other challenges not described in the report.

P2P.org identified risk as a recurring theme during interviews and was mentioned at multiple levels, including technology, operations, and regulation. Regarding technology, respondents insisted that smart contracts represent a risk to the security and reliability of their organization.

Challenges in operations and regulation

In operations, respondents explained how certain blockchain mechanics could affect the movement of funds between industries. For example, withdrawing funds from staked tokens could make the assets unavailable for some time, limiting how quickly capital can be redeployed to other business areas.

Regarding regulation, participants revealed that one of their biggest challenges was integrating a new product that was in line with the regulatory guidelines of their business region.

“The involvement of the legal and compliance team here is essential to assess the exact risk factor. As reported in one of the interviews, failure to correctly assess the regulatory level can affect the resources allocated to a new product initiative, which could then be considered unacceptable by regulatory authorities,” P2P.org stated.

As regulatory requirements pose a significant challenge, these institutions face limitations in product integration and innovation.

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