Cryptocurrencies are wildly notorious for their volatility, as they are easily influenced by media hype and government regulations. According to a report from CoinDesk, however, the institutional integration of crypto is increasing as volatility is seen by many as a window of opportunity.

According to The Financial Stability Board, the fast development of crypto markets “could reach a point where they represent a threat to global financial stability” as they begin to interact with traditional financial systems.

“Currently, crypto assets remain a small portion of overall global financial system assets,” the financial institution said in a press release. “The rapid evolution and international nature of crypto asset markets raise the potential for regulatory gaps, fragmentation or arbitrage.”

It is important to note that, unlike various other financial institutions, the FSB is absent of any legal power as its charter is an unofficial and nonbinding communication of understanding acknowledged by its members.

Bitcoin’s price hit an all-time high of $69,000 in November, yet that number now sits at just over $40,000. Stablecoins, which have their value tied to an external asset such as government-regulated currencies, saw their market cap increase from around $6 billion at the beginning of 2020 to nearly $160 billion at the end of 2021, according to Blockworks.