Crypto Regulation Can't Bridge Institutional Settlement Gap

A recent White House meeting has brought attention to institutional settlement in the crypto space. According to Lynq CEO Jerald David, regulation alone cannot solve the issue of institutions being unable to move cash and collateral around the clock.

David notes that while clearer rules would remove one barrier facing financial institutions, there is a more practical layer beneath it. This layer involves the operational problem of funding and settlement systems not always following the hours kept by crypto markets.

Crypto exchanges often remain open 24/7, but banking and securities systems typically follow business-day schedules. This can leave institutions unable to access cash or collateral immediately after making a trade, particularly when dealing with multiple venues, counterparties, and forms of money.