The three key elements for institutions to get on board digital assets: custody, capital efficiency, and regulatory transparency.

At the HSC Asset Management Conference held in Abu Dhabi, a head of institutional business from a leading exchange shared an interesting point of view: there are actually three main concerns that institutional players have regarding digital assets.

First is custody. This is not a new topic, but it is indeed a prerequisite for institutional entry. Once a formal custody structure is introduced, the rules of the game change - capital efficiency immediately becomes the core bottleneck. In other words, having a secure wallet is not enough; institutions need to find ways to make these assets work and generate returns.

Secondly, there is regulatory transparency. Why did the exchange set its headquarters in the Middle East? The answer is straightforward — the importance of a clear regulatory environment for technological innovation and global institutional confidence cannot be overstated. This is not just a cliché; it is a choice of real money.

Finally, there is practical application. This exchange has collaborated with traditional financial institutions to launch tokenized money market products. What does this mean? Institutions no longer see digital assets as isolated investment products, but as part of the entire blockchain financial infrastructure. From trading, lending, to asset custody, everything is interconnected.

These three elements combined are the real reasons institutions are willing to invest money. It's not FOMO; it's structured and logical.