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When will we see widespread blockchain adoption in the finance industry?

We'll see the real watershed moment for blockchain when the first large custody organization loses cryptocurrency in a breach. Because when they lose regular money in a breach, they can go to the Secret Service and get it back by working with national banks or governing bodies to reroute it. But if BlackRock inadvertently sends $400M in cryptocurrency to the wrong wallet, they can't just go to somebody and say, "We just made a mistake. Let's undo all of that." That’s when people will start saying, "This is a really messy and totally different asset class." And that will be the moment that the financial services industry decides whether it’s something they want to maintain custody for or not. The Secret Service’s original mission was to fund and protect the movement of money. When you start to look at things that are FDIC-insured, they provide a sense of assurance that if something happens, you have an inadvertent transaction. With blockchain, we saw a big discussion a few years back about whether to roll back the blockchain to give one entity back their $60M. Everyone refused; it wasn't even a consideration. People were like, "You want to erase the last week of all transactions that happened because somebody was an idiot? Yeah, that's not going to happen."

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We'll see the real watershed moment for blockchain when the first large custody organization loses cryptocurrency in a breach. Because when they lose regular money in a breach, they can go to the Secret Service and get it back by working with national banks or governing bodies to reroute it. But if BlackRock inadvertently sends $400M in cryptocurrency to the wrong wallet, they can't just go to somebody and say, "We just made a mistake. Let's undo all of that." That’s when people will start saying, "This is a really messy and totally different asset class." And that will be the moment that the financial services industry decides whether it’s something they want to maintain custody for or not. The Secret Service’s original mission was to fund and protect the movement of money. When you start to look at things that are FDIC-insured, they provide a sense of assurance that if something happens, you have an inadvertent transaction. With blockchain, we saw a big discussion a few years back about whether to roll back the blockchain to give one entity back their $60M. Everyone refused; it wasn't even a consideration. People were like, "You want to erase the last week of all transactions that happened because somebody was an idiot? Yeah, that's not going to happen."
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