Cryptocurrencies and digital assets: a growing investment opportunity

Removing emotion from decision-making and the potential for cryptocurrencies to provide ‘VC-style exposure’ were among the highlights of this session on digital assets, moderated by Sabih Behzad, Managing Director, Head of Digital Assets and Currencies Transformation at Deutsche Bank Corporate Bank & Investment Bank.

Our panellists were: Francesca Carlesi, Chief Executive Officer of Revolut UK, an early entrant in this space; Alice Kletskaia, Managing Director of Re7 Capital, a digital asset investment firm; and Marion Laboure, Managing Director, Deutsche Bank Research – Thematic Research. We extend our sincere thanks to them for their time and contributions.

Cryptocurrencies, stablecoins and digital currencies

With a total market cap of close to $3.5 trillion[1], cryptocurrencies have no shortage of investors. But the market remains highly concentrated, said Laboure, with Bitcoin accounting for around 60 percent of the market value. The name cryptocurrencies is a misnomer, she argued, as she gave a summary of the differences between them, stablecoins and digital currencies. “They are not stable, they’re not legal tender and they’re very volatile, so I would call them crypto-assets,” she said.

Stablecoins are a subcategory; a type of cryptocurrency used as an alternative to cash. Their market cap has surged since 2020 and now stands above $250 billion[2]. While there are various ways to maintain price stability with stablecoins, most are pegged to the U.S. dollar. They should be viewed as a means of payment rather than an investment opportunity, said Carlesi. But many companies are interested in their potential “because effectively this could become global payment infrastructure”. 

Central banks are also getting in on the act with plans for digital currencies that are recognised legal tender. While the first Central Bank Digital Currency was launched by the Bahamas in 2020, China’s digital yuan is now the main focus. “Chinese consumers can use it, so I would say it’s live, even if it’s officially still in pilot,” said Laboure. While the European Central Bank has not yet made a decision, she believes there could be a digital euro “around 2030”.

‘Stripping out the emotion’ from crypto investing

Revolut moved into digital assets and cryptocurrencies early because “we want to be where the future will be,” said Carlesi. Increasing investment, especially among younger generations, means “digital assets are here to stay” and will become “much more institutionalised”. As a result, last year Revolut launched the standalone cryptocurrency trading platform Revolut X. While cryptocurrencies are subject to “high volatility” and “reactivity to news”, they offer upside potential for anyone with a medium or long-term investment horizon, Carlesi added.

Kletskaia, who studied computer science, agreed that the “amazing asymmetrical upside potential” makes it logical to explore cryptocurrencies as an asset class. She first became attracted to the space as a personal investment opportunity and an alternative to venture capital. “Essentially, crypto allows you VC-style exposure, but in an ultra-liquid way because essentially tokens are pre-seed companies that are trading on an exchange,” she said.

When asked what family offices should consider when investing in this space, Kletskaia said: “Try to strip out the emotion and look at the opportunity on its own merits. “Most institutions that recommend an allocation recommend between 2 percent to 5 percent, so we're talking about a very small part of your portfolio and, therefore, I think the volatility is warranted.” You can still choose different risk levels with cryptocurrency investments, she added. “I think what has attracted most of our investor base is the fact that we are approaching an emerging asset class with a very institutional, traditional mindset.”

New regulations ‘a net positive for the industry’

New regulatory frameworks for crypto-assets are helping to legitimise the industry. The Markets in Crypto-Assets (MiCA) rules set new standards for the EU from 2024[3], while markets including the US and the UK are rapidly bringing forward their own detailed regulations[4].

Carlesi said the lack of a “fully formed” regulatory environment still poses challenges. She also pointed to a lack of harmonisation in regulatory approaches as a risk area. “This is a new market,” she said. “Let's set it up from the beginning in a more globally harmonised way rather than having different fragmented market systems.” But on the broader outlook, she added: “In five years, we won’t be having this discussion – this will be a normal asset class.”

“I would say that regulation is a net positive for the industry,” commented Laboure. She anticipates that it will spur investment, encourage new players to enter the sector and increase liquidity. “If we have more liquidity and more investment, we should see reduced volatility over the medium-term.” 

Key takeaways:

• With a market cap of almost $3.5 trillion as of June 2025, cryptocurrencies are becoming more established as an asset class. Their volatility means they are best suited to investors with medium- or long-term investment horizons.
• Investment in cryptocurrencies and digital assets is becoming more institutionalised. Institutions typically recommend limiting cryptocurrencies to between 2 and 5 percent of your portfolio, according to our panel. 
• Stablecoins are a type of cryptocurrency generally used as an alternative to cash, with most pegged to the US dollar. They could potentially provide a new system of global payment infrastructure.
• Some central banks are pursuing digital currencies as legal tender; China is piloting the digital yuan, while the European Central Bank is investigating the potential for a digital euro.
• New regulations for cryptocurrencies in the EU are expected to be followed soon by frameworks in the US and the UK. A lack of global harmonisation in regulation could create risks. Conversely, regulation could also spur greater investment, attract new entrants into the sector and increase liquidity. 

This event was from the latest in our series of family office conferences held around the world in recent years. You can find out more about previous events, and about the services we offer to family offices, here.