Which crypto winter? The demand for financial talent is booming

The experts at PolySign and its affiliates told Blockworks that the demand for financial talent is here to stay. The digital asset fintech company has a unique perspective on this trend because it recently acquired MG Stover, a full-service fund manager.

When asked if this demand is tied to an institutional “buy the dip” moment, Matt Stone, head of recruiting at PolySign and MG Stover, said it stems from more of a “buck up and build” mindset. They know that even if institutional interest is increasing, digital infrastructure needs builders anyway.

Crypto funds need skilled financiers

Just a few months ago, the labor market was in short supply. And when it came to crypto, Gary Newlin, senior director of business development, said that “talent acquisition was really challenging. Very few people had the breadth of knowledge of digital assets, plus accounting and/or finance. Although hiring is down from all-time highs and there is news of layoffs, these limitations still exist in the talent pool.”

“A lot of the problem comes down to that – there are just too few individuals with the right skills who also understand crypto. Newlin explained that “when you think about traditional finance (stocks, bonds, commodities), there are professionals who understand accounting, reporting , compliance and record keeping. It’s an extremely limited pool when applying the same principles to digital assets.”

Learn more: The top three trends in private funds trading in digital assets

Recruiters like Matt Stone have first-hand experience of this shortage of finance talent. He competes with fund managers in both crypto and traditional finance. And he attests to the fact that the pool of experienced talent interested in moving into or already in digital assets remains small. And while he recognizes that the potential for a recession could give him a reprieve, any respite will be short-lived.

Pat Clancy, head of digital asset strategy at PolySign, provided more insight into the macro forces at play. He explained that “in the last cycle, everyone had easy access to cash due to dodgy valuations and accelerated funding. As a result, digital asset managers and portfolio companies were trying to scale up and scale very quickly. This created an accounting nightmare.”

In addition to customers wanting to implement a market entry strategy, some administrative challenges still need to be resolved from the previous cycle. As Pat put it: “The funds use capital to address data integrity and compliance issues.”

The need for knowledgeable fund managers like MG Stover has never been greater, but they also need financial talent fluent in investment funds and digital asset technology. Clancy offered a baton analogy: “The foundations are looking for the talent that can give us the baton.” They need people who can speak the same language as the service providers for full accounting compliance.

But talent is not the only challenge on this front. Digital asset accounting needs data standardization across the board. For example, not all exchanges use the same tickers on their platforms. This creates a major headache for accountants, regardless of their crypto expertise.

Learn more: The importance of data and standardization in digital assets

Fortunately, some pioneering firms are establishing new practices and working to educate professionals. According to Josiah Reich, Senior Director of Hedge Fund Client Services, “We feel we are pioneering best practices in the industry. So we are teaching traditional financiers how to account for a digital asset as an investable asset class. Everything we do for our crypto funds and traditional long/ short equity, we apply the same principles to a crypto hedge fund.”

In fact, MG Stover is taking a significant role in creating new crypto talent by hiring “apprentices” in the industry. Rather than waiting for talent to arrive, the team takes a proactive role in helping individuals gain the necessary skills and knowledge. Matt Stover, founder and CEO of MG Stover, said that “another way we attract talent to the firm is through a sort of crypto-apprenticeship. We want to promote and recruit people for two or three years and then help them find opportunities at our clients – some of the most sought after jobs in crypto finance.”

From humble tech beginnings to the burgeoning financial industry

Matt noted that digital assets began with cryptographic computer engineers who had a vision to build technology that very few people understood. So it’s not surprising that people with the right skills and knowledge are hard to come by. As Matt put it, “There’s still a huge knowledge gap as a lot of this started with crypto enthusiasts. Blockchain developers were able to pick it up quickly, but the accounting and finance community had a longer learning curve.”

“MG Stover is focused on training traditional finance professionals who want to be part of the fastest growing asset class of our generation. Our goal is to push the asset class in the right direction and hopefully accelerate the career growth of the individuals participating in the digital asset ecosystem.”

This is of course changing, albeit slowly. As more and more people begin to understand crypto and recognize the relevant career opportunities, there will hopefully come a time when education and workforce developments swing in a corresponding direction.

Matt Stone hinted at this when he said “finance and accounting graduates are not leaving their crypto-focused business programs. I think more and younger people want to get exposure and they are investing in it. They don’t think of it as a career opportunity, but there are legitimate career opportunities in the digital asset private fund space.”

This content is sponsored by PolySign.

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