Often, concerns about security persist, though. When those discussions arise, Ms. Molnar said she is “very upfront about that it’s a new space,” and “we’re going to size it appropriately.”
Mr. Halstead added, “We believe that one of the major themes in the world today is an increasingly digital world,” so TRS focuses on how to organize at scale to participate.
When in comes to potentially wary constituents, Mr. Halstead spoke about the trust TRS has built with its members. “Just like we don’t tell them how to teach our kids, they don’t tell us how to protect their investment.”
Some boards have voiced concerns about the environment effects of cryptocurrency and the high amount of energy usage, frequently citing investors’ increased focus on environmental, social and governance factors. “What’s fascinating is the E dominates the conversation and there is no discussion about S and G,” said Joe Marenda, global head of digital assets investing at Cambridge Associates, which consults for endowments and pension funds. “S and G in blockchain and crypto is immensely powerful, and so much better than what we’ve gotten now that we actually have to elevate that portion of the conversation because it is not simply E, it is all three of them together,” he added.
He said the governance and voting structure with crypto and blockchain is “dramatically different. It is far more inclusive.”
The panel also discussed the recent collapse of the Terra stablecoin. While Mr. Halstead acknowledged its significance, he said it has “zero impact” in terms of what TRS is doing.
Ms. Molnar described the collapse as “a chance to reset” and a great entry point for those who have committed capital but not deployed it. “The technologies that are really strong will still have mass adoption and those that maybe weren’t … will go away, so it’s healthy.”