The largest financial institutions in the world are taking technology seriously - both as an opportunity and a risk. The same goes for the nascent crypto and digital asset industry.

In conversation with Ian Simpson, J.P.Morgan Managing Director and Head Markets Digital Assets Scott Lucas discussed the tectonic plates moving in capital markets, the potential for DLT and blockchain to bring value to established market participants - and how large financial institutions are thinking about the future of markets.

He also discussed the value (real and perceived) of tokenization, the potential for stablecoins, including why “competition is good” - and how settlement could and should look in digital asset markets.

(00:58) - Intro
(3:40) - What makes "good markets" ?
(6:06) The "optimal mix" or "minimal threshold" for new markets
(7:31) How J.P. Morgan looks at markets - new and old
(8:48) - The minimum barrier in crypto markets
(11:34) - The art of the possible and the useful
(12:34) Evaluating risk factors in new markets like crypto
(14:44) New technology alongside existing frameworks
(15:31) J.P. Morgan's inter-day repo as an example
(17:01) The high-level benefits of DLT and blockchain tech
(18:18) A wider-flatter market vs narrow and centralized
(19:15) If a regulator said "yes" today...
(20:07) When innovation comes to the table
(21:08) "Entitled" transparency
(22:07) Top-down vs bottom-up "shift"
(24:56) US vs Switzerland in the regulatory race
(26:24) Placing the "barrier" in the right spot
(28:18) The opportunity for Switzerland
(29:43) Capital requirements as a "gating factor"
(32:24) Financial market infrastructure for a bank like J.P. Morgan
(33:29) The downside of disintermediation
(34:12) Copying current capital market processes
(37:06) Some things are here for a reason...
(38:37) The ideal settlement model for big banks in digital assets
(40:41) The meaning of stablecoins for big banks
(43:53) Stablecoins in the wider capital markets
(45:05) Stablecoins as a settlement mechanism
(46:28) J.P.Morgan and tokenization
(49:13) Mobilizing (tokenized) collateral to support margin
(53:25) Different markets or one market?
(55:22) Partnerships moving the market forward
(57:11) What would really draw J.P. Morgan into crypto and digital assets?

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ABOUT THE HOST: Ian Simpson is Director of Marketing and Communication at RULEMATCH as well as host of the RULEMATCH Spot On podcast, focused exclusively on the institutional crypto and digital assets industry. Previously he was Head of Marketing at Bitcoin Suisse and Head of Communications at the Crypto Valley Association. Ian is a veteran of the Swiss crypto and digital assets industry since 2017. His insights on the Swiss crypto and blockchain ecosystem have been featured in CoinDesk, the leader in blockchain news.

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Disclaimer:The information contained in this podcast about RULEMATCH AG (“RULEMATCH”) and any guest company is for general informational purposes only and should not be considered exhaustive. They do not imply any elements of a contractual relationship nor any offering.

As the crypto and digital assets industry continues to “grow up” - a lot of hard work is being done. Some of it is known - some of it “under the radar”.

And some of the most foundational work in digitizing capital markets is being supported by some of the largest TradFi trading houses in the world.
In Part 2 of the episode, Chris Zuehlkle, Global Head of Cumberland, the crypto arm of DRW and RULEMATCH Spot On host Ian Simpson discussed some of the latest developments present - and future - in the crypto and digital assets space.

Will OTC and lit markets continue to co-exist side by side?

What will the US GENIUS and Clarity Acts mean for stablecoins and digital assets?

How will tokenization among financial institutions develop?

What early theses in crypto have not come true?

2:16 - OTC and CLOB in Cumberland's view of market structure
5:03 - The effects of regulation on the number of market participants
7:27 - A story about Chris as a "market structure geek"
11:00 - DeFi as the sandbox and how TradFi is "cherry-picking"
12:55 - The "state of play" in tokenization
14:24 - Two important steps for the industry
15:18 - Reducing uncertainty with collateral tokenization
17:34 Tokenization in repo markets & a $100 million example
19:39 - Who will push tokenization forward?
20:03 - Privacy as a "headwind" and cooperation with Canton Network
21:27 - Why Chris treats US crypto regulation as his "kids"
23:19 The crucial role of the Clarity Act
25:26 - The chances of the SEC and CFTC working together
27:42 - Interacting with regulators and giving feedback
28:53 - A thought experiment with Reg-NMS and tokenized equities
31:14 - A comparison of US and European crypto regulation
32:49 - How Cumberland tries to stay "efficient" with regulation
34:33 - The amazing things about stablecoins and being integrated into Cumberland
37:03 - How the stablecoin bill (GENIUS Act) unlocks new utility
37:21 - The debate about fully-backed or tokenized fractional deposits
39:08 - Crypto M&A picks up
41:59 - A look back into the crystal ball

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ABOUT THE HOST: Ian Simpson is Director of Marketing and Communication at RULEMATCH as well as host of the RULEMATCH Spot On podcast, focused exclusively on the institutional crypto and digital assets industry. Previously he was Head of Marketing at Bitcoin Suisse and Head of Communications at the Crypto Valley Association. Ian is a veteran of the Swiss crypto and digital assets industry since 2017. His insights on the Swiss crypto and blockchain ecosystem have been featured in CoinDesk, the leader in blockchain news.

X: https://x.com/ian_simpson80LinkedIn: https://www.linkedin.com/in/iasimpson80/

More about RULEMATCH: https://www.rulematch.com/

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Disclaimer:The information contained in this podcast about RULEMATCH AG (“RULEMATCH”) and any guest company is for general informational purposes only and should not be considered exhaustive. They do not imply any elements of a contractual relationship nor any offering.

Capital markets are in a state of flux - because of geopolitics, macro trends - as well as technology, like crypto and blockchain.

But some things remain the same - a need for effective use of capital, transparency and reducing uncertainty.

Chris Zuehlkle, Global Head of Cumberland, the crypto arm of DRW, knows all about it. From the early days of DRW’s foray into crypto, Chris has been involved in building Cumberland’s digital asset business and exploring all the challenges and opportunities.

In Part 1 of the episode, Chris and Ian Simpson explore:

- The resiliency of crypto markets- How crypto market structures have changed in 10 years

- Risk management principles related to trading and settlement

- The need for tokenized collateral

...and much more.

1:38 - Intro and bio of Chris Zuehlke

3:15 - How healthy are crypto markets today?

4:56 - What would help market resiliency?

5:25 - Addressing one of the biggest TradFI weakenesses

6:34 - The beginning of Cumberland

8:49 - Staying true to TradFi risk management best practices

9:59 - The rapidly evolving market

10:26 - A trading firm’s perspective on market opportunities

11:43 - Curiosity with a “big boy” attitude

12:44 - Being a trusted counterparty

14:14 - Building robust processes in crypto markets

16:20 - What is “counterparty risk” today?

17:43 - Why Cumberland is a “thoughtful organization”

19:16 - Making painful decisions about market opportunities

21:05 - How “new entrants” could raise the standard

23:41 - Has handling risk in crypto gotten easier?

24:33 - The “staggered development” of the market

26:22 - The state of vertical integration in crypto market players

29:49 - How DRW/Cumberland thinks of trading opportunities in crypto today

32:53 - Does self-interest lead to a more balanced market?

33:09 - How will low-latency tech change the game going forward?

36:24 - Avoiding pre-funded trading…and why

38:33 - How (and when) does Cumberland settle trades?

ABOUT THE HOST: Ian Simpson is Director of Marketing and Communication at RULEMATCH as well as host of the RULEMATCH Spot On podcast, focused exclusively on the institutional crypto and digital assets industry. Previously he was Head of Marketing at Bitcoin Suisse and Head of Communications at the Crypto Valley Association. Ian is a veteran of the Swiss crypto and digital assets industry since 2017. His insights on the Swiss crypto and blockchain ecosystem have been featured in CoinDesk, the leader in blockchain news.

Disclaimer:The information contained in this podcast about RULEMATCH AG (“RULEMATCH”) and any guest company is for general informational purposes only and should not be considered exhaustive. They do not imply any elements of a contractual relationship nor any offering.

Sophistication in financial markets is inevitable. In crypto markets it is just getting started. And banks - especially those with a long track record in the industry - are set to play a key role. One of these is Bank Frick, a pioneering bank from Liechtenstein who has been active in the blockchain and crypto space since 2015.

In this episode of RULEMATCH Spot On, host Ian Simpson sat down with Adam Retkes, Digital Assets Analyst at Bank Frick and discussed how the bank is levelling up its services - adding sophisticated solutions for more demanding institutional clients, also with the addition of Sponsored Access to RULEMATCH.

(00:45) Intro

(1:28) The number of Bank Frick clients

(3:02) The changing clientele and changing tech stack

(5:27) How the space is becoming more professional

(6:56) Getting “used to” banking-grade compliance

(8:52) Bank Frick as an educator

(10:36) Bringing degens into a private bank

(12:09) The entrepreneurial spirit

(12:45) Talking about crypto funds

(14:24) The new world of algo hedge funds

(15:52) TradFi old-timers seeking alpha with old tools

(17:13) Continued fragmented liquidity and the global dollar

(19:10) Serving hedge funds better

(19:54) Announcing Sponsored Access on RULEMATCH

(20:25) Explaining Sponsored Access

(22:16) Capital efficiency with Sponsored Access

(23:19) What is built-in leverage?

(24:20) How clearing makes things easier

(25:41) Low-latency as a key benefit

(27:03) The old becomes new

(28:27) Maintaining the same compliance and risk standards for banks

(30:26) The thing about “walled gardens”

(31:13) The challenge of crypto-fiat transfers and Bank Frick’s solution

(32:29) A lack of correspondent banks

(33:19) Bank Frick as a crypto “systemically relevant bank”

(34:13) Stablecoins as the way forward

(35:48) The landscape of regulated stablecoins

(37:08) The role of the euro and euro-denominated stablecoins

(40:31) Building walled gardens for stablecoins

(42:04) Looking into the crystal ball

ABOUT THE HOST: Ian Simpson is Director of Marketing and Communication at RULEMATCH as well as host of the RULEMATCH Spot On podcast, focused exclusively on the institutional crypto and digital assets industry. Previously he was Head of Marketing at Bitcoin Suisse and Head of Communications at the Crypto Valley Association. Ian is a veteran of the Swiss crypto and digital assets industry since 2017. His insights on the Swiss crypto and blockchain ecosystem have been featured in CoinDesk, the leader in blockchain news.

On X: https://x.com/ian_simpson80

On LinkedIn: https://www.linkedin.com/in/iasimpson80/

More about RULEMATCH: https://www.rulematch.com/

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Disclaimer:The information contained in this podcast about RULEMATCH AG (“RULEMATCH”) and any guest company is for general informational purposes only and should not be considered exhaustive. They do not imply any elements of a contractual relationship nor any offering.

The future of capital markets is being formed today.

But not everything is completely new...especially when it comes to electronic trading, risk management, and data quality.

Low Observable Technology (Lo:Tech) CEO and Co-Founder Tim Meggs - a veteran of TradFi markets - sat down with host Ian Simpson to discuss how his firm is helping promote "ethical market making", build advanced data services and getting set up for real high-frequency trading.

(1:10) Intro

(2:39) Where is the market right now?

(5:18) BTC season vs altcoin season

(6:53) How is institutional flow affecting the market?

(8:35) The “trickle-down effect” of Bitcoin ETFs

(9:12) Other sources of market liquidity

(11:02) Shrinking arbitrage and low-latency opportunities

(11:34) How big firms get comfortable with crypto

(12:22) Focus on market making

(14:54) How Lo:Tech is building for the future

(15:57) Who stands to benefit?

(17:58) The demand for high-quality market data

(18:57) What is ethical market making?

(22:11) Following best practices from TradFi?

(23:48) The tech for “doing it the right way”

(25:39) Raising the quality of data…and its side-effects

(26:50) What had to be changed?

(30:28) Getting to a state of clarity for risk management

(31:49) The state of play in crypto risk systems

(34:14) Shifting gears into HFT

(35:56) The REAL role of an HFT

(36:59) The tech “check-list” for Lo:Tech

(39:32) The “bare metal” infrastructure

(40:29) The new world of high-performance trading venues

(42:29) The founding team of Lo:Tec

(44:47) The geographical perspective on crypto

(47:10) What to expect with stablecoins

(49:27) Regulation - good, bad or…?

(51:40) Making the agreements right

(53:27) The crystal ball

ABOUT THE HOST: Ian Simpson is Director of Marketing and Communication at RULEMATCH as well as host of the RULEMATCH Spot On podcast, focused exclusively on the institutional crypto and digital assets industry. Previously he was Head of Marketing at Bitcoin Suisse and Head of Communications at the Crypto Valley Association. Ian is a veteran of the Swiss crypto and digital assets industry since 2017. His insights on the Swiss crypto and blockchain ecosystem have been featured in CoinDesk, the leader in blockchain news.

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Disclaimer:The information contained in this podcast about RULEMATCH AG (“RULEMATCH”) and any guest company is for general informational purposes only and should not be considered exhaustive. They do not imply any elements of a contractual relationship nor any offering.

Trading is deep in the DNA of Swissquote, one of Switzerland's largest digital-first banks. The forward-thinking firm was also early in the crypto market - in a big way.With Chief Sales and Marketing Officer Jan de Schepper, host Ian Simpson dove into the details of how Swissquote approaches its trading services for cryptocurrencies today - and how the bank's clients approach their investments in the space.

(1:24) Welcome and intro

(2:18) Why is Switzerland so good for banks in crypto?

(3:15) The backstory of Swissquote's start in crypto

(6:10) The building blocks of Swissquote's crypto offering

(7:25) "Red lines" for a bank in crypto

(8:32) The (liquidity) risk evaluation for a crypto offering

(10:46) Due diligence and education on new coins

(11:39) The sticky question of capital requirements for banks in crypto

(12:45) Crypto as a client acquisition driver

(14:46) Engaging with FINMA(15:51) Changing client appetite for coins

(16:41) How Swissquote clients trade the market

(18:52) Feature requests from actively trading crypto clients

(20:30) Balance between coins and crypto financial products

(21:49) Moving from retail to institutional

(24:12) Copycat banks in crypto?

(26:20) Swissquote and internal counterparty risk

(29:07) Crossover between forex and crypto

(30:13) Getting ready for tokenized assets

(31:44) "The current technology is not so bad..."

(32:41) Tokenize what...?

(34:52) Global competition coming...

(38:01) Is MiCA good for the industry?

(38:58) Competition on fees

(41:53) Looking into the crystal ball

ABOUT THE HOST: Ian Simpson is Director of Marketing and Communication at RULEMATCH as well as host of the RULEMATCH Spot On podcast, focused exclusively on the institutional crypto and digital assets industry. Previously he was Head of Marketing at Bitcoin Suisse and Head of Communications at the Crypto Valley Association. Ian is a veteran of the Swiss crypto and digital assets industry since 2017. His insights on the Swiss crypto and blockchain ecosystem have been featured in CoinDesk, the leader in blockchain news.

------Disclaimer:

The information contained in this podcast about RULEMATCH AG (“RULEMATCH”) and any guest company is for general informational purposes only and should not be considered exhaustive. They do not imply any elements of a contractual relationship nor any offering.

RULEMATCH Spot On - Winter Edition 2025: In Davos, host Ian Simpson spoke to Ronit Ghose, Global Head, Future of Finance at Citi.