Crypto is ‘a different animal’ – But can institutions handle it?

Institutional money is flooding into cryptocurrency markets at unprecedented levels, yet traditional finance infrastructure appears ill-equipped for the sector's relentless 24/7 volatility. Custodia Bank CEO Caitlin Long highlights a critical disconnect: "Those kinds of fault tolerances are built into [traditional] systems because of legacy reasons, where systems were not updating in real-time. In crypto, everything has to be real-time, and it's just a different animal."

Market euphoria surrounding potential Fed rate cuts compounds these structural risks. Social media chatter has reached feverish levels—a classic contrarian indicator that often precedes local tops. The institutional embrace of digital assets, while validating, brings inherent vulnerabilities. Instant settlement protocols and unceasing price action leave no margin for error in risk management systems designed for slower-moving markets.