Crypto Transparency Top of Mind for Institutional Investor Execs

Most chief financial officers say finding qualified and experienced DeFi-native asset managers will be key going forward

article-image

Visualistka/Shutterstock.com modified by Blockworks

share

About three-quarters of surveyed institutional investors plan to move more toward DeFi in 2023 in an effort to ensure asset transparency after the crash of various centralized crypto firms last year.

The study, conducted by blockchain-based finance firm Avantgarde, polled 50 US institutions with a minimum of $5 million invested in crypto. Two-thirds of the respondents have at least $50 million in assets under management.

About half of the institutions said demonstrating proof of reserves would influence how they allocate to crypto, while 62% said being able to retain control of assets, or private keys, would affect that decision.  

In all, 53% of C-suite executives cited “ensuring asset transparency” as a deciding factor in how they invest in the space.

This priority from leaders in the space comes after a year capped off by the bankruptcy of crypto exchange FTX. While competing exchanges rushed to offer proof-of-reserves reports following the company’s collapse, industry participants told Blockworks, many leave much to be desired. 

“The rails that traditional finance currently runs on are slow, complex and, in many cases, archaic,” Avantgarde CEO Mona El Isa said in a statement. “We truly believe that the value proposition of DeFi and the blockchain — its transparency, auditability, composability, permissionless nature and options for self-custody — will make the heritage financial model obsolete.”

Read more: What Is Proof of Reserves and Can It Build Back Trust?

Despite a willingness to move more toward decentralization, DeFi-native asset management professionals will be necessary going forward, respondents agreed. 

Though 62% of respondents say blockchain-based asset management software is “more attractive” today than it was 12 months ago, about 70% of polled chief financial officers say finding “a qualified and experienced” DeFi asset manager is crucial.

The survey comes as various financial services giants have touted the use case of blockchain technology, particularly tokenization.  

A survey by BNY Mellon in October found that 70% of institutional investors would increase their digital asset activity if services like custody and execution are available from recognized, trusted institutions. The study also indicated that 91% are interested in investing in tokenized products.

An executive at banking titan State Street told Blockworks last year that using distributed ledger technology to tokenize funds and private assets would be a major focus in 2023. Larry Fink, CEO of asset manager BlackRock, said in November he believes tokenization of securities is “the next generation for markets.”


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.jpg

Research

Bluefin possibly stands at an inflection point. The token is near an all-time low yet the protocol’s spot volume market share and derivatives exchange usage have been increasing month over month since its November launch. Given its current market position and the upcoming upgrades (for both Bluefin and SUI), there may be upside potential before the increased supply growth in December. However, strong opposition from existing competitors (like Cetus and Suilend), as well as new entrants (like Aftermath), pose key challenges to Bluefin’s medium-term success.

article-image

Top Committee Democrat Sen. Elizabeth Warren in her opening statement accused Atkins of “helping billionaire CEOs like Sam Bankman-Fried”

article-image

Introducing garbled circuits for enhanced privacy and regulatory compliance

article-image

Ross Ulbricht was a freedom maximalist building freedom tech, powered by Bitcoin

article-image

Solana validators can reap benefits including payments, votes and community clout

article-image

Sponsored

WalletConnect is cementing itself as the essential connectivity layer, ensuring wallets remain the entry point for billions of users

article-image

According to a legal filing, Galaxy Digital helped boost the price of LUNA while quietly selling its tokens