RISK • THE REAL DEAL
internal controls and capital requirements, and capital reserves for issuers. However, Sullivan, the rest of BCB Group's leadership team, and many of its institutional clients have welcomed this step towards regulatory harmonisation. MiCA offers much- needed clarity and consistency, which means less uncertainty and more familiarity for institutions − all of which can lead to greater adoption. THE FCA’S REGIME PLANS The FCA has announced that in 2027 it will introduce a regime to regulate cryptoassets, which will protect clients. However, because there is still a great deal of uncertainty about what the final rules will be, some providers may be hesitant to plan for this regime yet. In the summer of 2025, the US also approved the GENIUS Act, a new federal regulation of stablecoins, which could require this asset to be backed 'one-for-one' with USD. However, these developments are interpreted, and despite their differences, it is clear that these regulations are all moving in the same direction. Across all major jurisdictions, the benchmark for safeguarding, operational resilience and governance has risen sharply. This is why institutions that depend on fast cross-border settlements and manage high transaction volumes should be very cautious about partnering with providers that simply react to these changes and fail to take a proactive approach. BCB Group firmly believes that institutions should demand the evidence of safeguarding processes from any partner they use for payments or digital assets. Safeguarding failures are not only very costly in the short term, they also erode trust in the wider payment ecosystem. HOW SAFEGUARDING SUPPORTS BLINC CUSTOMERS BCB Group is committed to aligning its operating model with the evolving regulatory frameworks in the UK and Europe and actively seeks to exceed these requirements through its regulatory-first approach.
Crypto exchanges, liquidity providers and OTC desks now use BLINC to settle high-volume, high-value trades in real time. This minimises settlement delays while improving liquidity and reducing counterparty exposure. Bitstamp, Stillman Digital and Coinut are just a few examples of some of the institutions that have improved their treasury management, cut their operational risk and scaled with BLINC. The network maintains the relevant safeguards and controls that are required by regulated counterparties while enabling its clients to transact with speed and become more resilient during market volatility. This is why BLINC is now regarded as critical settlement infrastructure for financial institutions, not just a payment platform.
until the next day. This market risk is significantly reduced with BLINC, which enables instant, fee-free transfers with no transaction limits. Moving funds faster can help institutions respond to market changes more quickly and reduce their exposure to short-term volatility. Making settlements when conditions are favourable can improve agility.
for its risk transfer programme to institutional clients.
One of Aon’s most notable data- driven tools is its OpRisk database, which includes over 24,000 potential loss exposures. This enables BCB to better quantify potential loss exposures and manage and mitigate systemic counterparty and operational risks. PARTNERSHIPS THAT BUILD LONG- TERM TRUST BCB Group’s partnership with Aon and other leading firms also help it fulfil its regulatory compliance objectives and achieve greater capital efficiency. This is because it has the capacity and the expertise to explore meaningful ways to harness insurance policies to optimise its safeguarding requirements as a regulated EMI or PI to meet MiCA and FCA prudential safeguards. This strategic external validation and deeper risk transfer capability is indispensable for BCB Group’s institutional clients, who can benefit from the highest level of assurance. Ultimately, this builds more trust and stability in the crypto payments ecosystem over time. GOVERNANCE DETERMINES SCALABILITY Strong governance also allows payment infrastructure to be scaled sustainably without introducing any new vulnerabilities. When Sullivan looks at a business, he always starts with how decisions are made and who really makes them. The first priority for a new risk and compliance officer should be to learn how decisions are made and who really makes them. Understanding these organisational dynamics is just as important as having the right policies on paper, especially as the business grows and the leadership inevitably changes. “At BCB Group, we know that good governance is never a finished job because it isn't static,” he emphasises. It is a moving framework that needs to evolve in line with the operating model, an expanding client base, and the changing regulatory landscape. This is why BCB Group's recent senior hires reflect its efforts to
THE IMPORTANCE OF PARTNERSHIPS
The quality of partnerships should not be underestimated. Collaborating with partners that have substandard risk and compliance processes, lack leadership diversity or are embroiled in scandals can expose a provider to serious reputational risk. In contrast, collaborating with partners that have a strong track record of embedding resilience and risk into their core infrastructure helps to strengthen the wider financial ecosystem and reduce the risk of any single point of failure. BCB is proud to be partnering with Aon, one of the world’s largest insurers. “Partnerships with global risk advisory leaders [like Aon] are a foundational element in reinforcing BCB Group’s risk strategy,” Sullivan says. This helps the firm confidently move beyond internal compliance to more sophisticated, external risk management and risk transfer, Sullivan says. This can help BCB Group augment its regulatory-first approach by deepening its risk management expertise, mitigation and financial protection. These are all essential components in the digital asset space. “Aon, as the market leader in insurance for the digital asset sector, provides access to bespoke insurance and risk consulting solutions, directly addressing unique institutional exposures,” Sullivan adds. These include cyber risk, crime insurance for digital assets, and professional liability. BCB’s access to insurance capital and experience in bridging the gap between digital assets and traditional finance also makes it an ideal partner
At BCB Group, we know that good governance is never a finished job because it isn't static.
improve its decision-making processes and strengthen its long-term resilience. For example, in May 2025, it appointed Valentin Vincendon as Chief Product Officer, whose more than a decade of experience sits at the interface of digital assets and payments. This aligns with BCB Group's mission to act as the bridge between the world of digital asset and traditional finance with its BLINC instant settlement solutions. Earlier in 2025, BCB Group also appointed Armin Ranjbar as its Chief Technology Officer. He has over 20 years of experience in tech and has special expertise in stablecoin infrastructure and machine learning. HOW TRUST AND UX DRIVE ADOPTION BLINC emerged because crypto- native firms needed reliable access to fiat settlements in order to run their businesses and manage payroll, suppliers and operating costs. Back in 2018, traditional banking access for these institutions was limited, which is why BLINC became the logical next step to help close the gap between crypto and traditional payments. Launched in 2020, BLINC has rapidly evolved to become an essential component of the digital assets ecosystem. This is a good example
of the network effect: as more people use BLINC and benefit from it, adoption increases − although this was only possible because it solved a structural problem that crypto-native institutions were already experiencing on a daily basis. As demand for BLINC's instant settlement grew, BCB added EUR, CHF and USD to BLINC to ensure its customers could benefit from more flexibility while reducing their currency risk. WHAT INSTITUTIONS EXPECT IN 2026 Institutional clients will want consistency, familiarity and clarity. BLINC's compliance and tech stack has been designed to reflect these expectations, avoiding unnecessary complexity and enabling clients to pay with certainty, reduce costs and significantly reduce settlement delays. As regulations evolve and the gap between traditional finance and digital assets closes, embedding safeguarding and resilience into the foundational infrastructure of crypto-asset service providers (CASPs) will become a prerequisite, not a differentiator. BLINC's instant settlement network is well placed to lead this evolution and help institutions navigate the next phase of crypto adoption.
HOW BCB MITIGATES MARKET RISKS Traditional rails handle many payments well − but only when the size and urgency of these payments is at a certain threshold. For example, Faster Payments in the UK can be particularly convenient up to a limit; however, once you start transacting above £1m, costs increase and settlements can take much longer. For institutional clients, this creates both treasury and settlement inefficiencies. The traditional payment system can be costly for institutions that regularly make transfers in excess of £1m, Each bank also operates different schedules and cutoff times, which means some payments that are transferred late in the afternoon may not be processed
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