S&P Global Ratings Study Predicts Crypto and Decentralized Finance Will Continue to Grow in 2022.

S&P Global, an intelligence and data company, suggests that crypto and decentralized finance trends will continue to gather steam in 2022. In its latest report, the company examines the current state of the market and notes that, while there are still serious problems that could hinder adoption, the sector will keep growing by complementing traditional finance in the coming year.

S&P Global Believes Crypto Will Continue to Grow in 2022

A new report prepared by S&P Global, an intelligence gathering and data company, predicts that the cryptocurrency and the decentralized finance sectors will keep growing in 2022. The report, titled Global Credit Outlook 2022, declares that while crypto institutional investments are still concentrated in a few companies, this could lead to other institutions following suit. The report states:

Three companies–Block.one, MicroStrategy, and Tesla–hold almost 84% of corporate investments in bitcoin. Yet, growing interest from institutional investors augurs accelerated expansion for cryptocurrencies as investment vehicles.

According to the report, tokenization could also be a powerful force to help people invest in assets they would not be able to without these tools. Tokenization, in other words, could provide the possibility of democratizing opportunities. Regulation will also be an important part of the next year, with the industry still needing “a regulatory framework that recognizes the rights of token holders and smart contract protocols.”

DEFI WILL NOT PUT TRADITIONAL FINANCE IN JEOPARDY

When it comes to decentralized finance, the report states that while the sector will keep growing, it will not jeopardize the traditional structures that manage banking and finance. However, these institutions will have to adapt to what users expect of financial platforms today. The report declares:

Defi will continue to complement, not supplant, traditional finance in 2022. We believe it will continue evolving in 2022 toward complementing the current financial system rather than substituting financial services companies. To remain relevant, we think incumbent players will have to further step up investments in new technologies.

Regulation will be a key factor in the growth (or stagnation) of the decentralized finance area during the next year, according to the report. S&P Global believes that the growth in volumes and the rise of stablecoins in the space will put pressure on the regulatory debate, but it is unlikely that regulators will jump to address these issues quickly because they often still lack the frameworks to fully monitor crypto assets, and this becomes a challenge in itself.

Go to our website for more info https://stockpoint.io/

We have made cryptocurrency trading more accessible☑️

#crypto #btc #cryptocurrency #cryptonews #cryptocurrencyinvestment #cryptocurrencynews #blockchain #innovation #bitcoin #ico #tokensale #btc #cryptotrading #ethereum

--

--

--

Stock Point is a cross-platform cryptocurrency exchange. Crypto it’s easy with us! stockpoint.io

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Josh Lawler: Microsoft’s Ethereum-based Token on Azure Solidifies Humanity’s Assimilation into the…

Secret Weapon of FTX

Optimistic Virtual Machine Alpha

Google Dives into the Ethereum Blockchain with its Big Data Analytics Platform

Crypto Games, a Market in the Making of Its Own Fortune

The Top Ten Cryptocurrencies to Invest in for November 2021

CA INDEPENDIENTE ($CAI) FAN TOKEN SELLS OUT IN LESS THAN 15 MINUTES GENERATING OVER $300K (USD)

In regards to investing cryptocurrencies, you may have to take a position if the current market you…

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Stock Point

Stock Point

Stock Point is a cross-platform cryptocurrency exchange. Crypto it’s easy with us! stockpoint.io

More from Medium

Crypto Gaming Project Litmus Test

Crypto Gaming

Voices of Crypto and Defi Kingdoms | Jan 4 2022

What are Asset-Backed Tokens and Which Assets can be Tokenized?