- In July, LinkedIn reported a 5.4% drop in national hiring and an additional 1.5% drop in its August report
- Although this indicates that tighter financial conditions are hitting the job market, it does not mean that the desire for crypto finance talent is gone.
The experts at Poly Sign Its affiliates told Blockworks that the demand for financial talent is here to stay. Digital asset fintech has a unique perspective on this trend because it recently acquired it MG StoverFull service fund manager.
When asked if this demand is related to the institutional “slip-buying” moment, Matt Stone, hiring manager at PolySign and MG Stover, said it stems from a “link and build” mindset. They know that despite the growing institutional interest, the infrastructure for digital assets needs two builders regardless.
Crypto money needs skilled financial professionals
Just a few months ago, the labor market was experiencing a labor shortage. And when it comes to cryptocurrencies, Gary Newlin, Senior Director of Business Development, said, “Acquiring talent has been really challenging. Very few people have extensive knowledge of digital assets, as well as accounting and/or finance. Although hiring has fallen from its all-time highs. Absolutely and there is news of layoffs, but these limitations in the talent pool are still there.”
“A large part of the problem is due to this – there are very few individuals with the right skills who also understand cryptocurrencies. When you think about traditional finance (stocks, bonds, commodities), there are professionals who understand accounting, reporting, compliance, and record keeping,” Newlin explained. It is a very limited group when applying the same principles to digital assets.”
Recruiters like Matt Stone have first-hand experience with this shortage of financial talent. It competes with fund managers in both cryptocurrency and traditional finance. It attests to the fact that the pool of experienced talent interested in moving into digital assets or into digital assets is still small. And while he realizes that the possibility of a recession may offer him a respite, any interruption will be short-lived.
Pat Clancy, PolySign’s Head of Digital Asset Strategy, provided further insight into the overall forces influencing. He explained that “in the previous cycle, it was easy for everyone to get cash due to buttery valuations and accelerated funding. As a result, digital asset managers and portfolio companies tried to ramp up and expand very quickly. This created an accounting nightmare.”
In addition to clients looking to implement a market entry strategy, some management challenges still need to be resolved from the previous cycle. In the words of Pat, “the funds distribute capital to solve data integrity and compliance issues.”
Not only has the need for savvy fund managers like MG Stoffer been greater than ever, but they also need financial talent savvy in mutual funds and digital asset technology. Clancy offered an analogy to the relay race: “The boxes are looking for talent who can hand the relay stick to us.” They need people who can speak the same language as the service providers in order to fully comply with the accounting.
But talent is not the only challenge on this front. Digital asset accounting needs to standardize data across the board. For example, not all exchanges use the same indicators on their platforms. This creates a huge headache for accountants, regardless of their coding experience.
Fortunately, some leading companies are creating new practices and educating professionals. According to Josiah Reich, Senior Manager, Hedge Fund Client Services, “We feel like we are paving the way for best practices in the industry. So, we are teaching traditional financial people how to account for digital assets as an investable asset class. Everything we do for crypto funds and traditional long stocks/ In short, we are applying the same principles to a crypto hedge fund.”
In fact, MG Stover plays an important role in creating new crypto talent by hiring industry “interns”. Rather than waiting for talent to arrive, the team takes a proactive role in helping individuals gain the necessary skills and knowledge. Matt Stover Founder and CEO of MG StoverHe said, “Another way to attract talent to the company is through crypto apprenticeships of some sort. We want to promote people, recruit them for two or three years, and then help them find opportunities with our clients — some of the most in-demand jobs in crypto finance.”
From the humble beginnings of technology to the thriving financial industry
Matt points out that digital assets started with cryptographic computer engineers with a vision of building technology that few people understand. Therefore, it is not surprising that people with the right skills and knowledge are difficult to obtain. As Matt said, “There is still a huge knowledge gap as a lot of this started with crypto enthusiasts. Blockchain developers were able to get by quickly, but the accounting and finance community has had a longer learning curve.”
MG Stover focuses on training traditional financial professionals who want to be part of the fastest growing asset class of our generation. Our goal is to push the asset class in the right direction and we hope to accelerate career growth for individuals involved in the digital asset ecosystem.”
Of course, this is changing, albeit slowly. As more and more people begin to understand coding and learn about related career opportunities, we hope that there will come a time when education and workforce trends will swing in the opposite direction.
Matt Stone alluded to this when he said, “Finance and accounting graduates don’t leave their business programs with a focus on cryptocurrency. I think more and younger people want to show up, and they’re investing in it. They don’t think of it as a career opportunity, but there are legitimate career opportunities out there. space for digital assets private funds.
This content is sponsored by Poly Sign.
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