Fireblocks readers for Defi, Tokenization, and MPC Security

Digital asset space is shifting rapidly as traditional finance approaches inches as blockchain promises and innovators from crypto come closer to setting the pace. Developments such as tokenized stocks and latest security standards have fueled industry-wide conversations across global events.

Adam Levine, SVP of Fireblocks’ Corporate Development and Partnerships, and CEO of Fireblocks Trust Company, stand at the intersection of these advancements. Speaking to Beincrypto on Sunnikan in the French Riviera, Levine shared a prepaid perspective on the current state of regulatory advancements, tokenization and institutional cryptography adoption.

Institutional understanding, the pace of adoption, and the evolving risk curve

You see conversations become much smarter, right? In the past, we looked for reasons to say no, whether they pointed out regulations or claimed that the technology wasn’t working. What we just saw is that traditional institutions see evidence from the world of cryptographic world of scale and speed that blockchain can do.

Now they are really beginning to think that they can do smarter and better with technology. Therefore, the nature of conversation has become much better. The tech team is really beginning to understand the difference. Also, infrastructures with different protocols are beginning to understand what the limits and opportunities for smart contracts are.

Overall, it’s really encouraging to see you think you can get business results instead of starting from a no place.

Not surprising, banks aren’t the fastest, right? However, a crypto native team that is always on the cutting edge can run faster.

They are different stakeholders. What we see is that some of these crypto-native companies have become more mature companies. And Fintech and Neobanks still have stakeholders who need to think about all the different types of risks in the meantime, but who need to move much faster than traditional banks.

So when the bank really moves, you feel the impact, but it’s definitely native to this encryption and now Neo Bank Fintechs is beginning to see the impact faster.

Liquidity, interoperability, and layer 2 rise

Whether it’s the L1S or the L2S, what you see from so many people is all gameplay when it comes to the market. They are looking for a niche that can differentiate them. They use their funds to provide truly important incentives to recruit into the industry. That’s nothing wrong. That’s great. But what this means is that it is symbolized by a chain of certain types of assets and another chain. And now you have these different pools of fluidity.

You can say the same thing in Stablecoins, right? If you’re using USDC or USDT for one protocol, but want to buy assets under another protocol, it’s not working, right? So there are these issues and many stable coin providers only get incentives to provide natively with great, multiple protocols. It’s really not the most efficient. What’s exciting is the innovation seen in interoperability.

The companies we work with very closely, Layerzero, owners, chain links, wormholes all offer very important Interop solutions that help us deal with the issues of iconic political parties in one blockchain, but have stable ones that need to be purchased on another blockchain. People don’t need to think anymore, have USDC on polygons and USDC on ETH, but I want to buy assets at base, what are you now?

These solutions are important and will be natives from crypto, but even Biddle and examples Kinexis and JPM are real POCs and are in production delivery that rely on these interim partners.

Crypto Security Standards and MPC

MPC is the gold standard in terms of the quality of security used in wallets. If they control the key, that’s important. Unfortunately, many people think that multisig is MPC or multiparty calculation. That’s clearly not the case. It may feel obvious, but we can point out quite a few official examples of very large hacks.

If you don’t want to buy cheap fish or security, you need to focus on the MPC version. Obviously, we believe our experience and proven resilience are where you need to start, but MPC must be the norm.

Regulatory environment and advances in digital assets

I argue that the industry is miles ahead of last year’s location, probably because of changes in the US market.

All market regulators need to take into account their concerns and, like Vara, they’ve been way ahead for a while. But when I travel worldwide, I see that large institutions want to know what happens in the US.

And for the first few weeks of the current Federal Agency, Crypto is fine in a world that symbolizes blockchain, not just traditional US financial players. And now we are beginning to see changes from the regulatory community. Genius will become important not only domestically but also worldwide. And it signales banks and traditional players and payment service providers. They should be leaning towards it.

Adopting tokenized hubs and use cases

The tokenization engine is great. This allows you to use a library of smart contracts to tokenize what you need. But we are thinking about a more open system. So if you have your own smart contract you developed or are one of the partners like tokens and want to bring it to mint and burn, you can absolutely do it. We’re seeing some really good use cases from some clients, including personal debt tokens, equity tokenization, bringing it to new markets, and more. That’s great.

We’re still looking at some of the funky edge cases where people want to tokenize investment grade wines and resources. The tokenization engine works well.

What is not said on stage: institutional debt and competitive responses

Robin Hood’s announcement was undoubtedly really interesting. We’re listening to people talking about how Europeans can easily access an incredible, simple app through US stocks. They are really excited to see how the rest of the market, some of the big banks react. So it’s wider than Robinhood and their influence alone… The constantly approaching conversation is how institutional obligations are really adopted by large asset managers, hedge funds, and banks begin to promote it. That seems to be important.

Conclusion

Adam Levine of Fireblocks provides a clear view of the rapid evolution of digital asset infrastructure. Traditional finance continues to have a steady shift towards smarter adoption and fintech and Crypto native teams. The challenges of interoperability and liquidity are tackling with advances in protocol solutions, but security standards such as MPC have established new benchmarks. Evolving regulations have built much needed trust for institutions, and the surge in tokenization use cases indicates a mature industry poised for collaboration and mainstream success.

The advancements in this sector are closely tied to regulatory clarity, competitive fintech innovation, and commitment to strong security and seamless interoperability.