The world of crypto is dazzling speculators, techies and entrepreneurs alike. Increasingly, it is not only attracting young finance professionals but also seasoned bankers.

«More and more smart people from different industries are moving in to reshape the (finance) industry,» said Karen Chan, chief executive of Coinsuper, speaking at a tech conference organized by the Milken Institute last week.

This includes experienced bankers who risk being laid off as the financial industry cuts its headcount. They look at the opportunities offered by fintechs.

Attracting High-Profile Bankers

Chan was among a rising number of seasoned bankers looking to join the fintech space as traditional banks get challenged by both fintechs and technology giants. 

In July, it was reported that Michael Alexander got involved in cryptocurrencies. Alexander, the previous Asia chief executive at Jefferies, headed to Block.one’s venture capital arm, the firm behind a recent $4 billion cryptocurrency offering.

Other examples of bankers taking an interest in tech firms were Raymond Baer and Pascal Forster in Switzerland. They joined Crypto Finance in Switzerland's Crypto Valley as board members, finews.asia reported in 2017.

Three Main Draws

One driving force explaining why bankers get so interested is the potential for blockchain to change the financial market. A second is infrastructure-related, with e-wallets, custodian, settlements, and brokerages making it exciting for ex-bankers such as Chan.

Third, the chance to work with young people who are genuinely interested in how these technologies can change the old ways. «They see the world so differently and they are not speculators,» Chan said. «They love decentralization, they love no borders, they love freedom.»

«These three things can support the development of cryptocurrencies in the long run. The bearish and bullish sentiments may change daily but this could be long-term,» Chan noted.

Following the Entrepreneurs

Ron Cao, managing director at Sky9 Capital, also sees similar talents being drawn into the financial infrastructure business. His firm has invested in blockchain projects since 2013. One investment was in Bitcoin in China, when the cryptocurrency still cost less than $100.

«What we are seeing now are tier one entrepreneurs, who have built companies, understand how regulation works, jump into the industry. We've not seen that in the last eight years,» Cao said. They are likely have played a part in luring investment bankers and investment professionals.

«Making money doesn't mean it's a great business. There's been money made but so many of these businesses have not lasted. Ultimately, it is the great CEO and great business models,» he said.