Bybit’s Yoyee Wang Highlights Why Custody Design and Regulation Matter for Institutional Crypto
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, participated in the two-day HSC Asset Management conference, which brought together policymakers, asset managers and technology leaders to discuss digital assets, artificial intelligence and the future architecture of financial markets. Wang joined a panel examining how institutional-grade infrastructure is influencing the evolution of digital finance.
The discussion reflected a broader shift in institutional conversations, moving away from whether digital assets are viable and toward how they can be integrated into existing risk, trading and operational frameworks. For Wang, the challenge is no longer curiosity, but execution.
Custody as a Question of Risk and Capital Efficiency
During the panel, Wang emphasized that institutional discussions around custody are driven primarily by risk management rather than asset storage alone. “When institutions talk about custody, the discussion usually starts with security – transparency, control of assets and risk reduction,” Wang said. “But custody is not the objective in itself. The underlying question is how clients can trade more efficiently while managing risk.”
As off-exchange settlement models and third-party custodial arrangements gain traction, Wang said capital efficiency has become a central concern. Institutions are increasingly focused on how much capital must be tied up to support trading activity, particularly in volatile markets where balance sheet usage is under constant scrutiny.
“As custody structures are introduced, whether through multi-party arrangements or off-exchange solutions, the immediate challenge for the industry is capital efficiency,” Wang said. “The priority is to improve capital efficiency, on top of enhanced security and reduced counterparty risk to exchanges.” Her remarks underline a growing consensus that infrastructure design must support both safety and trading performance.
The Role of Regulatory Clarity in Institutional Confidence
Wang also pointed to regulatory clarity as a decisive factor in institutional participation, highlighting the United Arab Emirates as a jurisdiction where clearer frameworks are supporting market development. Bybit established its headquarters in the UAE, positioning the firm within a regulatory environment that has continued to evolve over recent years.
“Bybit established its headquarters in the UAE some time ago, and we've seen regulations in the region become progressively clearer,” Wang said. “That clarity and certainty are critical for technology innovation and for building confidence among global institutions.” She added that predictable rules enable firms to invest in infrastructure and product development with greater confidence.
According to Wang, clearer regulatory frameworks have also improved communication between regulators, exchanges and institutional participants. This has helped move discussions beyond compliance uncertainty and toward longer-term questions around market structure, risk controls and innovation, particularly as the region positions itself as a global digital asset hub.
Tokenized Assets and Broader Institutional Participation
Addressing tokenized real-world assets (RWAs), Wang noted that Bybit has focused on offering products backed by established financial institutions, rather than experimental structures. “We've launched tokenized products in collaboration with Qatar National Bank and UBS that provide exposure to underlying money-market instruments,” Wang said. “These structures allow clients to access traditional returns within a digital asset framework, while benefiting from liquidity and trading functionality.”
At the same time, she cautioned that the broader RWA market remains fragmented. “The market today includes a wide range of structures and standards,” Wang said. “Our focus is on products that are well-structured, subject to appropriate oversight and designed to be tradable, so they can support liquidity in secondary markets.” This approach reflects institutional demand for familiar risk profiles within digital formats.
Wang concluded by urging institutions to think beyond digital assets purely as an investment category. “We'd like institutions to look beyond digital assets solely as an asset class and consider them as part of a broader blockchain infrastructure,” she said. “Participation can take many forms — from liquidity provision to agency trading or technology collaboration — depending on an institution's business model and risk framework.”
Takeaway:Institutional crypto adoption is increasingly driven by practical considerations — how custody models affect capital usage, how clearly regulators define the rules, and whether products mirror familiar financial structures. For firms like Bybit, building infrastructure that aligns with institutional risk and efficiency requirements is now central to market growth.