TradFi firms gather crypto talent to boost blockchain business

Traditional financial firms (TradFi) are keen to develop their blockchain capabilities and have increasingly hired crypto-savvy employees who have been laid off due to the market downturn.

Prior to the market crash, cryptocurrency companies had expanded rapidly, but were then forced to contract rather quickly when prices began to fall.

While companies such as BitPanda and BlockFi cut staff, Coinbase, the largest cryptocurrency exchange in the US, lost 1,110 employees, nearly 20% of its total staff, in June.

“You suddenly have a very skilled workforce redundant, looking for new jobs in markets where blockchain capabilities may be in high demand,” said William Shaw, a Bloomberg journalist.

While it was assumed that fintech firms would largely be the ones absorbing this pool of talent, it has rather been TradeFi firms.

TradFi bank on blockchain

While banks remain somewhat contentious on issues surrounding cryptocurrencies — “the thing with banks and crypto, the first rule is you don’t talk about crypto,” one banker told Shaw — many are more interested in the underlying blockchain technology, and its potential for trade more conventional securities.

According to Shaw, Citi has been exploring how to use blockchain in the bond settlement process, while it and other major banks have advertised for key roles around blockchain and crypto in recent weeks.

For example, Citi has announced a digital asset risk manager at the direct level for cryptocurrencies, Goldman Sachs is seeking a VP of crypto and blockchain, and JPMorgan’s asset and wealth management business, which manages $7 trillion in total assets, is looking for someone to oversee blockchain strategy, including crypto and digital currencies.

In fact, TradFi banks have made a glorious summer out of the crypto winter of discontent, having been unable to find the right talent until now.

According to Thomas Olson of Bain & Co., while banks had struggled to recruit sufficiently knowledgeable talent for the past 6-9 months, they are now taking advantage of the crypto winter to jump-start industry development and scale up their crypto operations.

Specifically, they are looking for compliance specialists with knowledge of cryptocurrencies and distributed ledger technology.

Naturally, payment firms have also been keen to acquire what they consider to be ‘hot talent’. As Revolut increased its crypto workforce earlier this year, rival payment platforms Plaid, Stacks and Block are also encouraging those with crypto experience to apply.

Filling “mission-critical” roles remains essential

Still, despite currently having to downsize, many crypto companies remain resolute about their mission. After losing a fifth of its staff, Coinbase is still recruiting for “mission-critical roles,” such as business operations and strategy, human resources, recruiting, as well as legal and compliance.

Having survived several previous downturns, the company likely retains some flexibility and experience in downsizing effectively.

However, in the current economic environment, it is not only cryptocurrency companies that have struggled, but also many legacy firms. While the crypto companies’ mission may motivate many to return, for now, given the global economic turmoil, workers may prefer the security of employment at a well-established firm.

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