Peter Wuffli, the former CEO of Switzerland’s largest bank UBS and director at Swiss crypto bank Sygnum, has stated his intention to tap the “$220 billion market of institutions and private individuals who already own cryptocurrencies.”
In his recent interview with local news publication, SwissInfo, Wuffli shared that innovation can make the market much more efficient. Wuffli has showed excitement concerning the strong potential of crypto assets.
In an interview, he said:
“The most immediate opportunity is the existing $220 billion market of institutions and private individuals who already own cryptocurrencies. Thousands of clients have contacted us for a one-stop-shop for asset custody, loans and trading cryptocurrencies seamlessly with fiat currencies.”
On Asset tokenization
Wuffli believes the tokenization of assets such as company shares; real estate; art or commodities is the next frontier in the industry. However, he also noted that there are still many unanswered questions regarding tokenization, and many of them are regulatory in nature.
On Distributed Ledger Technology
Wuffli believes that DLT (distributed ledger technology) can bring a lot of difference as he feels it’s more about democratizing the financial market. DLT has the prospects to be more reliable, cheaper, and faster technology for services. He thinks it could be useful in building smart contracts and securitizing shares for producing up-to-date share registers. It could help get rid of combining system and spreadsheets for dividend payment, secondary market trading, and doing capital increases that could simplify the system to a great extent. Most importantly, it could also eliminate trade settlement duration time along with counter-party risks.
He has also voiced his scepticism towards Facebook’s Libra, and the idea of corporate currencies in general; adding that nation-states will not allow such assets to threaten their monopoly on currencies, saying:
“However, I do believe that the regulation of financial services and control over currencies are essential tasks of the state and that currencies cannot be decoupled from sovereign states. As soon as someone tries to challenge the sovereign monopoly on currencies, they will not allow it, and for good reason. Besides, I don’t think people will treat private currencies like that without the power of a country and a political system behind it.”