The S&P Global analytical group believes that in 2022 other institutional investors will join these companies, so far only showing an interest in the cryptocurrency industry.
S&P Global analysts have released a report called “Global Credit Outlook 2022″, in which they state that trends in the development of cryptocurrencies and DeFi will gain momentum in 2022. The authors of the study acknowledge that existing problems may hinder global adoption of cryptocurrencies in 2022. Despite this, the sector will continue to grow and complement the traditional financial system.
Researchers are concerned that only a few companies are making significant investments in the cryptocurrency sector. In their opinion, other institutional investors will soon follow suit.
“Three companies: Block.one, MicroStrategy and Tesla own almost 84% of corporate investments in bitcoin. Nevertheless, the growing interest from institutional investors predicts an accelerated expansion of the use of cryptocurrencies as investment vehicles. ”
The report says that tokenization can be an effective tool for investing in assets that could not be invested in their usual form. According to the authors, it provides equal opportunities for all market participants.
According to the document, regulation will be an important factor next year, as the industry still needs “a regulatory framework that recognizes the rights of token holders and smart contract protocols.” S&P Global believes that despite the growth, DeFi will not threaten the traditional banking system. However, financial institutions will have to adapt to current and future user needs.
“DeFi will continue to complement rather than supplant traditional finance in 2022. We believe that in 2022, DeFi will continue to evolve towards complementing the existing financial system, not replacing them. To stay relevant, incumbent players will have to continue to increase investment in new technologies. ”
S&P Global believes that the growth in the stablecoin market will put pressure on regulators. But, in their opinion, the authorities will not rush to solve problems, since they are not yet in a position to conduct effective monitoring and regulation of cryptocurrencies.
According to The Block, there have been 1,700 venture deals in the cryptocurrency industry this year. The amount of investments exceeded $ 25 billion. Recently, the analytical company Arcane Research published a forecast for the development of the cryptocurrency market, according to which Bitcoin in 2022 will be more profitable than the S&P 500. Analytical company Fitch Ratings believes that issuers of stablecoins will face many risks before integrating into the financial system and being able to compete with the banking system.
