EXCLUSIVE: Crypto contagion infects Fintech – but it’s apples and oranges, says Symbiont CEO – Bitcoin (BTC/USD)

Blockchain, the technology that underpins cryptocurrencies such as Bitcoin BTC/USDcan propel a traditional financial services firm into the next frontier of fintech.

And yet, it’s highly complicated and extremely scrutinized thanks to the current drama surrounding certain bad actors (ie Luna and FTX).

“The examination of the contagion of what has gone wrong in the crypto world ends up bleeding into those of us who try to use fintech – even if it is apples and oranges,” Symbiont CEO Mark Smith told the audience Thursday at the 2022 Benzinga Global Fintech Deal Day event.

See also: EXCLUSIVE – Wall Street still likes crypto even after FTX collapse

Blockchain pros are now looking to solve “hard problems,” like smart contracts, and alleviate problems that continue to anchor financial markets, Smith explained. Gone are the days of “mystique behind this magical technology.”

Smith appeared on stage for the panel “Blockchain Technologies to Support Traditional Finance,” next to Justin Chapmanglobal head of digital assets and financial markets for Northern Trust, and Milena Kohlhofer, director of blockchain for american bank.

And to the traditional financial services firms who may feel a little apprehensive about exploring the space, moderator Roy Ben Hur of Deloitte asked each guest to give some advice.

“You have to get buy-in from the top of your organization,” Chapman said, citing the importance of “understanding and education first.” Without your entire organization supporting you, projects can grind to a halt or fail to start at all.

Smith advised blockchain pros to “understand the problem they’re trying to solve and make sure the solution is appropriate.”

“Like Justin said – blockchain doesn’t solve everything,” Smith noted, adding that many of the “failed projects” came about because blockchain probably shouldn’t have been used in the first place.

For Kohlhofer, it was “all about implementation”.

“I think we’ve done enough testing, and I know the customers we’ve worked with have done a lot of testing as well,” she said. “Select the most impactful project to move forward with and talk closely with regulators early on to get approval … starting this process early will really help push real projects into production.”

CLICK HERE for video from the event, or see below:

Photo: From left – Roy Ben Hur; Milena Kohlhofer; Mark Smith; Justin Chapman (photo by Joseph Parks for Benzinga)