Umar Farooq, the head of JPMorgan’s digital assets unit Onyx Digital Assets (ODA), says the majority of the crypto assets on the market are “junk”. He believes that real crypto cases are yet to fully come up. Farooq, during a panel discussion at the Monetary Authority of Singapore’s Green Shoots Seminar, highlighted that regulation is yet to catch up with the burgeoning industry.
He said it is holding back many traditional financial institutions from getting involved. Farooq thinks the utility for most crypto assets is lacking. The executive said that besides a few dozen tokens, everything else is either noise or will go away. He shared that the use cases have fully arisen and regulation hasn’t caught up. Farooq says it’s a bit slow in catching up.
The ODA boss argued that the sector has not matured enough to where it can be utilized to facilitate high-value serious transactions between traditional financial institutions or to host products like tokenized deposits. Farooq said that crypto, blockchain, and the broader Web3 movement are providing a vehicle for wild speculation. These things need to mature so that one can actually use them. He said most of the money used in Web3 in the current infrastructure is for speculative investment.
JPMorgan, in May, had trialed tokenized collateral settlements through its own private blockchain.