SESSION 2: Decentralised Finance (“DeFi”) & Opportunities for Swiss Pension Funds?

Background for the session:
Crypto currencies still have an image of speculation, gaming and fraud. This reputation is overhauled. Bitcoin along with more than 10’000 alternative crypto currencies result in over 2 trillion USD or 1 to 2% of global financial assets. Bitcoin still is the dominant crypto currency with a market share of 40% and has already experienced boom and bust periods since its start in 2009. Fraud rates are below 1% since transparency is unprecedented due to the blockchain technology based on distributed ledgers.

Since 2019 crypto based money, transactions, trading and even investment possibilities entered a new era. Transaction costs are tumbling, smart contract technologies are flourishing and offerings of financial products are blooming. An institutionalisation of investment products is under way. Investors can earn variable or fixed income streams from lending to DeFi (decentralised finance) platforms or by providing liquidity to decentralized exchanges (DEX). Structured products, mutual funds and even ETFs are already available and allow for regulated investments. International institutions, law makers and regulators give high attention to the risks and opportunities of crypto currencies and DeFi in particular. Switzerland and Liechtenstein are first movers in making laws for the crypto industry.

Format of the session
The main goal of this panel is to find out if the time is already ripe for institutional investors and pensions plans to start observing or investing in crypto currency or DeFi instruments.

An introduction into crypto currency and blockchain lays the foundation for the understanding of DeFi.

    • What is DeFi and why is it relevant for institutional investors?
    • What are return and risk perspectives for investors?
    • What is DeFi aiming for considering that it is still in an experimental stage?

The discussion with distinguished panelists should answer the following questions:

    • Is crypto and DeFi here to stay or is it just a bubble?
    • How does the future of crypto markets look?
    • Should pension funds already consider such investments or is it too early?
    • What is the stance of the regulation?