Cryptocurrencies

Kunal Bhasin, Co-Head of Digital Assets at KPMG Canada, says:

Institutional investors will buy high-value commercial real estate crypto stocks when more opportunities present themselves, says Kunal Bhasin, co-head of digital assets at KPMG Canada.

Coding could change who owns large commercial buildings — which have historically been limited to deep-pocketed property managers and pension funds, Bhasin told Cointelegraph at the Toronto Collision conference.

The technology could give institutional investors, such as family offices, the opportunity to own part of Toronto’s main shopping center, the Eaton Centre, and other large buildings.

“Tokenization of commercial real estate can really enable this,” Bhasin said. He predicted that this would become one of the most important institutional use cases in the cryptocurrency sector.

Sam Burgee (left) of Cointelegraph speaks with Kunal Bhasin (right) of KPMG in Toronto Conference on collisions Source: Cointelegraph

But Bhasin noted that many of these “institutional DeFi” players prefer to transact in a more permissioned environment.

Organizations recognize the efficiencies that decentralized fintech brings, but they want to know the participants they are interacting with.

Know Your Customer checks will also be an important part of this process, Bhasin said.

Tokenized properties are slowly being adopted.

Bitfinex Securities facilitated a token asset raise to invest in the 4,500 square foot Hampton by Hilton hotel at El Salvador International Airport in April – but only managed to raise $342,000 until present, or less than 6% of its goal of $6.25 million.

Another optimistic use case that Bhasin hopes to develop further in the near future is tokenized treasury bills and money market funds.

He highlighted the relative success of BlackRock USD’s Institutional Digital Liquidity Fund (BUDIL), which has amassed a value of $462.7 million since its launch in March, according to data compiled by 21Shares.

Reputation risk is holding organizations back, but things are improving

Bhasin noted that asset management firms and banks are hesitant to become more active in the cryptocurrency space due to the wave of scams and scams.

“Reputational risk” in this sense still exists, but progress has been made recently.

Bhasin said KPMG leverages the infrastructure of blockchain analytics firm Chainalysis to identify potential illicit activities that may be linked to its clientele.

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“There is fraud in every industry,” he said, but banks are more likely to work with industry players who implement the necessary infrastructure and best practices to identify any illicit activity .

“Soon, not getting involved in cryptocurrencies and digital assets will be an occupational risk,” Bhasin said.

“If you don’t offer it today, your competitors will – and they’ll gain that advantage over you. »

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Additional reporting by Sam Borghi.

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