*This article is a compilation by Bybit and does not represent the views of Bybit, nor is it investment advice, buy or sell recommendation. See the liability warning at the end of the article for details.
Bybit, the world's second-largest cryptocurrency exchange by trading volume, recently participated in the HSC Asset Management Summit in Abu Dhabi. Yoyee Wang, Head of Bybit's B2B division, emphasized at the summit that efficient custody design, capital efficiency, and a clear regulatory framework are key elements attracting institutional investors to the digital asset space. The two-day event brought together policymakers, asset management companies, and technology leaders to discuss global investment trends, digital assets, artificial intelligence, and the future architecture of financial markets.
During the Grand Forum Day at the summit, Wang participated in a panel discussion entitled "The Future Stack of Digital Finance: Investment, Trading, Custody and New Market Architecture," which explored in depth how institutional-grade infrastructure is shaping the future development of digital finance.
The panel discussion was moderated by David Gevorkian, Managing Director of TWO23 Group, and also featured Kevin Lee, Chief Business Officer of Gate, Yana Minaylova, Head of Institutional Sales and Business Development for Binance Middle East and North Africa (MENA), and Jessica Wu, Head of Bitpanda Technology Solutions for Asia Pacific.
Custody, Risk and Capital Efficiency
During the discussion, Wang emphasized that institutions' focus on custody stems primarily from considerations of risk management and operational efficiency.
"When institutions discuss custody issues, they usually start with security, including transparency, asset control, and risk mitigation," Wang said. "But custody itself is not the ultimate goal. The real core question is: how can clients effectively manage risk while improving the capital efficiency of their transactions?"
She pointed out that as custody and over-the-counter (OTC) settlement models become increasingly popular, market participants are paying more and more attention to the efficiency of capital utilization.
"With the introduction of custody structures, whether through multi-party computation (MPC) arrangements or over-the-counter settlement solutions, the direct challenge facing the entire industry is capital efficiency," Wang said. "In addition to strengthening security and reducing counterparty risk to exchanges, how to further improve capital efficiency has become a top priority."
Regulatory Clarity in the United Arab Emirates
Wang also emphasized that clear regulation is key to promoting institutional participation, citing the United Arab Emirates as an important example.
"Bybit recently established its headquarters in the UAE, and we have witnessed firsthand the increasing clarity of the region's regulatory framework," she said. "This certainty is not only crucial for technological innovation, but also effectively builds market confidence for global institutions."
She added that a clear framework helps facilitate constructive dialogue between regulators, market participants, and technology providers, laying the foundation for the market's long-term robust development.
Tokenization of real-world assets
In response to the growing market interest in tokenized real-world assets (RWA), Wang pointed out that Bybit has partnered with well-known financial institutions to provide customers with regulated RWA products.
"We have partnered with Qatar National Bank and UBS to launch tokenized products that allow clients to invest in underlying money market instruments," Wang explained. "These structured products enable clients to obtain traditional financial returns within a digital asset framework, while enjoying high liquidity and convenient trading capabilities."
However, she also cautioned that the current RWA (Real-Wait) industry still suffers from inconsistent standards and varying quality.
"The market is currently flooded with all sorts of structures and standards," Wang said. "Our focus is on products that are well-structured, properly regulated, and designed for trading, because only in this way can liquidity in the secondary market be effectively supported."
Institutional participation beyond asset exposure
Finally, Wang encouraged institutional investors to think about how to participate in the digital asset space from a more macro perspective.
"We hope that institutions will not only view digital assets as a single asset class, but also see their potential as part of the broader blockchain infrastructure," she concluded. "Institutional participation can take many forms, from providing liquidity and brokerage services to technical collaborations, depending entirely on their own business model and risk tolerance framework."
From left to right: David Gevorkian, Managing Director of TWO23 Group; Kevin Lee, Chief Business Officer of Gate; Jessica Wu, Head of Bitpanda Technology Solutions Asia Pacific; Yana Minaylova, Head of Institutional Sales and Business Development for Binance Middle East and North Africa (MENA); and Yoyee Wang, Head of Business-to-Business (B2B) at Bybit.
About Bybit
Bybit is the world's second-largest cryptocurrency exchange by trading volume, serving over 80 million users globally. Founded in 2018, Bybit is committed to creating a simpler, more open, and equitable ecosystem for everyone, redefining the possibilities of a decentralized world. Bybit has a deep focus on Web3, strategically partnering with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody services, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit has successfully bridged the gap between traditional finance (TradFi) and decentralized finance (DeFi), empowering developers, creators, and enthusiasts to unlock the full potential of Web3. Explore the future of decentralized finance at Bybit.com .
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