Galaxy Investment Partners CEO Mike Novogratz believes major traditional financial players are starting to stake their claims on the blockchain.
According to a new Bloomberg report, Novogratz says that institutional investors are starting to invest in the crypto markets again after last year’s major volatility.
“Institutions have come back some in the immediate term. They’ve come back in futures. They’ve come back in some of these stocks. But importantly, they’re coming back in structural ways.”
Novogratz points to the traditional financial giant PayPal creating a new stablecoin, PayPalUSD (PYUSD), as evidence.
PYUSD is a stablecoin that aims to keep a 1:1 peg with the US dollar.
Says Novogratz of PayPal’s new stablecoin project,
“[PayPal] could end up creating a stablecoin that gives interest – which right now would be a security – that really destabilizes the banks.”
Novogratz is also confident in the stability of the leading stablecoin by market cap Tether (USDT).
“[There isn’t] any significant risk or any real risk of a big run on Tether, which sometimes just scares the market.”
Novogratz’s investment firm Galaxy focuses on investments in cryptocurrency and blockchain technology. Novogratz is a vocal advocate for cryptocurrency and has been called a “Bitcoin Bull.” He has said that he believes cryptocurrency is the “currency of the future” and that it has the potential to revolutionize the financial system.
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