How Do You Convince Financial Institutions To Trade Crypto? Inside Circle's Institutional Trading Business

The Benzinga Fintech Summit is a gathering of the top leaders in brokerage, payments and cryptocurrencies in San Francisco Nov. 14. Ahead of the Summit, Benzinga is profiling fintech thought leaders who are speaking at the event.

For this installment, Benzinga interviewed Beatrice O'Carroll, head of institutional sales at cryptocurrency exchange Circle.

What is Circle, and what is your role there?

We’re a global crypto finance company on a mission to make it possible for anyone, anywhere to help change the global economy, that uses open standards and protocols to build our products. My primary role is to bring flow on to the trading desk for Circle Trade (find counterparties to trade with) and my secondary role is to get institutions trading on Poloniex.

As someone with extensive experience in financial institutions, what are the steps that need to be taken in order for the industry to see widespread institutional adoption of cryptocurrency as an asset class?

There needs to be a greater understanding/clarifications of roles in this ecosystem. The organizational structure of traditional institutions does not fit in crypto. Crypto was born out of the financial crisis to upend that structure and remove the "middle men." So it's imperative that traditional shops unearth where and how they can add value within the crypto structure, and not necessarily treat it like another asset class that can be added to their offerings.

Who are your customers, and how exactly does your work support their goals?

Our counterparties are trading desks, funds, high net worth individuals, ICOs and miners. Circle Trade is a liquidity provider that assists them in executing their strategies.

Circle's been quite active in M&A, and you directly oversee the Poloniex aspect of the business, as I understand it—how does this consolidation affect the wider institutional crypto space?

Circle acquired Poloniex with the objective of helping to transform it into an institutional grade marketplace. This impacts the wider space by increasing competition and driving innovation.

What sold you on cryptocurrency? Have you always been a believer? If not, what changed your mind?

My brother introduced me to crypto just after the crisis by asking if any of my clients (traditional Wall Street) would ever trade it. I was intrigued and skeptical but kept an eye on it. Having worked through the crisis and gave me a deep appreciation for what BTC was trying to accomplish. When a colleague of mine moved to a BTC exchange and then asked me if I was interested in joining them, I jumped at the chance.

What did you think would happen five years ago in the fintech and cryptocurrency space? How well did your predictions bear out?

I had no idea then and have no idea now. One of the things that I love about this market is the incredible pace at which things develop and the hard left turns that ensue. It certainly keeps you on your toes.

What is the biggest surprise, or thing you've learned, since you joined Circle?

That people continually believe that any of the desks trade at a discount (i.e., outsized vapor trades that never seem to go away).

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