Cryptocurrency and the distributed ledger technology behind many of these “coins” or “tokens” have the potential to completely change the way securities are created, distributed, and traded. They also hold the potential to change how purchases are made and assets are tracked.
As with any significant leap that our industry takes, opportunities must be balanced against the risks involved. Some of our clients are convinced that cryptocurrencies increase the risk of fraud, and others believe they reduce the risk of fraud. They are all right.
With the opportunities and risks associated with cryptocurrencies, Oyster has undertaken an effort to assist participants and those considering participating in this market to understand and implement a disciplined process to keep their organizations safe while taking advantage of the opportunities that these tokens and the technology behind them offer.
Oyster Consulting has always believed that the most effective organizations seek input from leaders within sales, trading, operations, technology, compliance, and risk when deciding how to innovate within their businesses. Oyster takes this approach, too. As we built our team to support our financial services clients that are implementing new products and distributed ledger technologies such as blockchain, we called on the collective experience and expertise within our firm and outside our organization to develop a disciplined approach to cryptocurrencies and the technology behind it.
In the coming weeks, we will be producing a series of blogs and webinars to help our industry understand the opportunities, risks, and appropriate implementation process for these products. We’ll discuss due diligence process, current limitations of technology, and the evolving regulatory and compliance landscapes. We welcome your feedback and input as we prepare for the future.