Institutional adoption of digital assets: Keynote by Alexander Filatov

During AIBC Eurasia today held in Dubai, Alexander Filatov, a leading voice in the field, emphasized the importance of integrating blockchain infrastructure with traditional financial systems. He highlighted the need for seamless inter-operability and data transfer between legacy systems and blockchain networks, particularly in areas such as cross-border payments, trade finance, and supply chain management. Filatov (in photo above), predicts an increase in cross-border payments requiring banks to work more closely with cryptocurrencies. He also mentioned the development of a digital wall by Telegram, which is pushing for a browser for apps within its platform.

While many focus on the price of Bitcoin, Filatov drew attention to the adoption levels of cryptocurrencies, which he estimates to be between 25 to 35 percent. He believes that crypto has now arrived and is here to stay.

Solutions around cross border payments, trade finance and supply chain management require bridges between legacy systems and blockchain networks to enable seamless interoperability and data transfer.”

He cited the example of the Plexus PayPal project and suggested that Non-Fungible Tokens (NFTs) can bridge the gap between companies and consumers, eliminating intermediaries like Google and Facebook.

A strong advocate for digital twins, Filatov sees their growing adoption as a significant driver for blockchain and crypto infrastructure development and performance. He noted enhanced performance in scalability, speed throughput, latency, finality, interoperability between chains, security, compliance, financial infrastructure integration, and institutional-grade custody solutions.

He mentioned banks in Switzerland that handle both fiat and crypto, and platforms like Coinbase and Gemini. He also discussed emerging trends in blockchain scalability, such as sharding, layer two solutions, sidechains, consensus algorithm innovations, quantum-resistant blockchains, state channel networks, off-chain computation, shard chains, blockchain inter-operability protocols, and layer three solutions.

Filatov acknowledged the recent solution by Solana, called Firedance, and discussed layer two protocols, swaps, and bridges, which he finds slightly controversial. He expressed intrigue over the latest solution from Chainlink and noted the increasing focus on inter-operability.

He warned of the significant amount of crypto being stolen each year and stressed the importance of security and compliance in smart contracts. Filatov is an advocate for advanced cryptography, smart contract auditing, secure key management solutions, and compliance features like identity management, KYC/AML processes, and regulatory reporting functionalities.

To conclude his keynote, Filatov reiterated the need for integrating blockchain infrastructure with traditional financial systems and the importance of institutional-grade custody solutions, secure storage systems, multi-signature wallets, and custody solutions complying with industry standards and regulations. He believes that these steps are crucial for the institutional adoption of digital assets and for boosting infrastructure.

Alexander Filatov is an entrepreneur and former corporate executive with over 25 years of experience in management and private enterprise. He gave his keynote at the AIBC Eurasia being held in Dubai this week.

Filatov started his career at Procter & Gamble in 1994, and has since held several executive positions in strategy and M&A, including CEO roles in multibillion-dollar manufacturing corporations in various industries.