‘The deeper the liquidity pools, the more quickly we can get to value in crypto’: Ripple’s Brooks Entwistle

Even though institutions are taking an interest in crypto, the financial services industry is far from mainstream adoption. What would it take to make it happen? Or is the mainstream adoption of crypto still a decade away? 

Back in the day, the enterprises and banks that considered digital assets as a threat to the traditional finance industry are now the ones who are looking for ways to introduce digital assets in their existing product portfolios.  

“At first, the notion of crypto adoption at any forum was mostly a ways off. The fintechs and FIs that were aggressive on this front initially are now the ones that are interested in driving, taking their own initiatives, looking for advice, and being a big part of this movement of digital assets going mainstream,” said Brooks Entwistle, who is SVP of global customer success and managing director for APAC and MENA at Ripple, a provider of enterprise blockchain solutions for cross-border payments.

One of the crucial factors that determines the health of a market is liquidity. Low liquidity levels make it difficult to execute trades without causing a significant impact on price. This is where companies like Ripple operate.

“Liquidity is a big issue for any sort of financial markets, and the deeper the liquidity pools, the more seamlessly we can move the value custody, important settlements, and lending products as well,” he said.

Furthermore, the mainstream adoption of NFTs in the arts and entertainment worlds has showcased the commercial utility of blockchain and crypto. However, beyond this area in which NFTs can shine, many real-world business use cases are still at an early stage and are yet to see the light of day -- from licensing and certifications to real estate to supply chain management and logistics for businesses. ENFT (Enterprise non-fungible tokens) is another crypto solution for enterprises, that helps to represent ownership and track assets, to verify the authenticity of a product, record ownership rights, and manage business critical data in general, said Entwhistle.

APAC stands out as a region experiencing innovation and growth in crypto and blockchain and is more advanced in terms of institutional crypto adoption and cross-border payments than the US. Ripple’s On Demand Liquidity, which leverages the digital asset XRP as a bridge currency to eliminate the need for pre-funding in cross-border payments, and credit uptake have been driven by several key consumers in APAC, resulting in “extraordinary volume growth", according to Entwhistle. 

Much of the growing pains the digital asset industry is dealing now with are part of the industry maturing and building for the long-run. 

“What I look at this from an opportunity standpoint is, yes, it's unnerving for the industry but if you really go deeper into the core problem, you're trying to solve and not be a solution looking for a problem,” he said.

Bitcoin and the cryptocurrency market as a whole have always been wild rides – but the ship may start to steady from here on out.

“We just have to build through it and make sensible business decisions. I think those who do that, stay focused on the mission, and are in it for the long haul are going to be exiting on the other side of success,” he added.

With institutions and enterprises moving toward more widespread crypto adoption in fits and starts, it seems like a basis to smooth out the transition – yet the ebb and flow of a long journey lies ahead.

“It's going to be a pivotal year – down the road all the big global FIs will foster the mainstream crypto adoption. People and enterprises that have discipline and learn to navigate in times of financial crisis will emerge as winners,” said Entwhistle.