The next wave of worldwide cryptocurrency adoption could be ignited by the United States, as regulatory bodies progress toward establishing clearer guidelines for banks and other financial organizations. This is according to Alessio Quaglini, Chief Executive Officer and Co-founder of Hex Trust, a digital asset custody firm based in Hong Kong.
Speaking in a recent interview with Benzinga, Alessio stated, “In just a few months, virtually every bank operating in the U.S. will be offering custodial services for Bitcoin BTC/USD.”
He believes, “True adoption will take hold when banking institutions begin providing Bitcoin deposits, trading platforms, and even sophisticated structured financial products.”
His insights arise at a time when Washington D.C. appears to be demonstrating a more receptive approach to integrating cryptocurrency. Alessio noted that many global banks have conducted trials involving digital assets but refrained from fully launching due to the absence of approval from U.S. regulatory agencies. He asserted that, “Bitcoin already enjoys a certain level of recognition. Regulatory uncertainty has consistently been the main obstacle.”
Alessio also highlighted the potential transformative impact of stablecoins, anticipating their eventual replacement of the SWIFT system for international financial transfers. He elaborated, “Stablecoins are essentially programmable currency. They offer improved speed, reduced costs, and the potential to revolutionize remittance services. Traditional players like Western Union should be paying attention.”
Hex Trust, established in 2018, specializes in providing custody, staking, trading solutions, and lending services tailored for institutional clients. The company operates under licenses granted in Hong Kong, Singapore, Dubai, and across Europe.
The company anticipates revenues to reach $20 million by 2025 and aims to significantly scale operations to hundreds of millions, ultimately pursuing an Initial Public Offering (IPO). Alessio stated, “Our ambition is to become the J.P. Morgan of the crypto sector in Asia.”
Hex Trust initially launched with $300,000 in seed funding, including a $50,000 personal investment from Alessio. The company subsequently secured a $6 million Series A funding round in 2021. Today, Hex Trust employs over 200 individuals and supports more than one million end-users through its institutional partnerships.
This strategic push occurs as publicly listed competitors, such as Coinbase Global Inc. and Galaxy Digital Holdings Ltd., face increasing pressure to diversify their revenue streams due to fluctuating trading volumes.
Coinbase, with a market capitalization approaching $50 billion, derives the majority of its earnings from retail trading fees. Meanwhile, Galaxy reported a net income of $422 million in the second quarter, primarily driven by proprietary trading activities.
Alessio emphasizes that Hex Trust’s strategy is consciously oriented toward custody and institutional services, mitigating exposure to market volatility.
Alessio, a former banker, first invested in Bitcoin back in 2014, acquiring it at approximately $280 per coin. He recounted, “I sold a portion of my holdings and purchased a house in Japan, which is where I met my wife.”
He now perceives the market as increasingly driven by institutional investors, noting the transfer of substantial Bitcoin holdings from early adopters to asset management firms and banks. He stated, “These entities are long-term players, akin to central banks holding gold reserves. They are engaged in strategic accumulation.”
Alessio concluded, “The regulatory frameworks established in the U.S. have global implications. Once American banks take action, the rest of the world will follow suit. This is when Bitcoin will truly achieve mainstream status.”
Read Next
Eric Trump Highlights China’s Influence on Crypto Industry, Calls It a ‘Hell of a Power’ in Crypto