Institutionalization of Crypto Trading Webinar Recap: Market Infrastructure, Regulation and the Path Forward

The institutionalization of crypto trading is gathering momentum as financial firms seek to optimize risk, capital efficiency and operational resilience. The evolving regulatory landscape and the integration of digital assets into traditional market infrastructure are now at the forefront of industry dialogue.

These themes were explored in depth during the recent Nasdaq webinar “Changing Market Models for Digital Asset Trading: Institutionalizing Crypto with Modernized Infrastructure” that featured:

• David Riegelnig, CEO and Co-founder, RULEMATCH
• Sandra Ro, CEO, Global Blockchain Business Council (GBBC)
• Carl Slesser, Head of Trading Product Strategy, Nasdaq
• Gerard Smith, Head of Post-Trade Product Strategy, Nasdaq

Here are key takeaways and insights from the conversation. And after you’re done reading, don’t forget to register for Part 3 of our webinar series on the institutionalization of crypto, “How Collateral Management Fuels Institutionalization in Crypto Markets.”

The webinar opened with a discussion on the transformation of crypto market structure, moving away from the “all-in-one” exchange model toward a more segmented, traditional infrastructure. This shift is not just technical, it’s cultural, as TradFi increasingly enters the digital asset space. Panelists agreed that the result is a more dynamic environment for institutional investors who are seeking the same standards of risk management and operational resilience they expect in traditional markets.

Sandra Ro highlighted the significance of this trend, noting that the presence of industry leaders like Nasdaq and other players signals growing confidence in the sector. The panel agreed that the evolution of trading infrastructure (mirroring the separation of roles seen in securities markets) is a prerequisite for attracting institutional capital and fostering sustainable growth. 
 

As digital asset markets mature, the importance of risk management and custody practices has come to the fore. Panelists stressed that while innovation is vital, the lessons learned from decades of TradFi trading should not be set aside. Instead, best practices around counterparty risk, operational resilience and custody hold deep relevance and should be adapted and enhanced for the unique challenges of crypto.

David Riegelnig explained that robust risk and compliance frameworks remain an overarching priority. The need for qualified custodians, bankruptcy-remote settlement and strict delivery-versus-payment protocols are essential for building trust and mitigating risk. As markets scale, the resilience and sustainability of infrastructure are tested, especially during periods of volatility. The panel agreed that sound custody and risk management are non-negotiable to institutional adoption.
 

Regulatory clarity is a must for institutional engagement in digital assets. The panel discussed recent legislative milestones, such as the GENIUS Act for stablecoins and the ongoing evolution of the CLARITY Act, which are shaping the future of market infrastructure and adoption in the U.S. Sandra Ro provided a detailed overview of the regulatory landscape, emphasizing the complexity and importance of harmonizing rules across jurisdictions.

Panelists noted that while progress is being made in jurisdictions like Switzerland, Singapore and the European Union, the risk of a fragmented global regulatory environment remains. Institutions require clarity to operate confidently and the lack of unified standards can hinder cross-border activity and innovation. 

The integration of digital assets with established financial infrastructure is seen as a catalyst for institutional adoption. Panelists discussed how the promise of instant settlement and 24/7 markets is pushing traditional finance to evolve, with crypto acting as a “test bed” for innovations that may soon be adopted more broadly. The emergence of prime brokerage offerings, improved payment rails and regulated trading venues are all critical for attracting institutional investors.

David Riegelnig argued that institutions currently engaging with crypto assets are positioning themselves for the next wave of tokenized securities and native digital assets. The panel explored the operational challenges of integrating digital payments, collateral management and settlement processes, noting that seamless movement between tokenized cash and yield-bearing assets could be transformative.
 

Collaboration across the industry is driving momentum in digital asset adoption. The webinar highlighted the role of pilot projects, regulatory sandboxes and ongoing dialogue between market operators, regulators and technology providers. Panelists emphasized that operational readiness, standardization and education are essential for successful integration.

Gerard Smith closed the session by underscoring the importance of preparing for integration and fostering collaboration. The panel agreed that collective efforts to address challenges, share best practices and build resilient infrastructure are necessary for institutionalization.
 

Despite the opportunities, challenges remain. Regulatory uncertainty, operational readiness, and the need for robust governance and controls are top concerns. The panel called for continued investment in technology, training and industry collaboration to overcome these hurdles.

Panelists also discussed the importance of standardization, with models like ISDA’s Common Domain Model providing consistency and transparency. The integration of blockchain, smart contracts and AI were highlighted as a way to enhance efficiency and interoperability. Ultimately, the path to institutionalization will require a concerted effort across the industry to address regulatory, operational, and technological barriers.
 

What’s Needed to Drive Progress?

• Regulatory clarity: Consistent frameworks across jurisdictions to support adoption.
• Standardization: Common models and transparent processes for market participants.
• Operational readiness: Training, governance, and change management capacity.
• Industry collaboration: Shared knowledge and best practices through pilot projects and sandboxes.
• Technology: Integration of blockchain, smart contracts, and AI for efficiency and transparency.

By addressing these areas, organizations can support the institutionalization of crypto trading and unlock the full potential of digital assets in global markets.

Nasdaq is committed to helping the entire capital markets ecosystem pave the path to institutional digital assets adoption. That includes providing market infrastructure via the Nasdaq Eqlipse suite and Nasdaq Calypso’s end-to-end technology for market participants in Nasdaq Calypso. Our solutions empower markets to grow while driving ecosystem-wide modernization.
 

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