by Sayantani Sanyal
February 17, 2022
Banks that have invested in cryptocurrencies are forging ahead with the digitization of finance
When Bitcoin was first launched in 2009, financial institutions were scared off and were quite skeptical about its value and performance. Financial institutions such as global banks have repeatedly warned early crypto investors that it is a new, unregulated asset class. One of the main reasons why banks and other traditional financial institutions have been able to stay away from cryptocurrencies and blockchain technology for so long is that they pose a massive threat to them. In centralized financial systems, the money always goes through the banks. But since cryptocurrencies providing a new efficient and decentralized payment and transaction method, most individuals were attracted to investing in these digital currencies. But despite the many arguments presented by the centralized financial institutions at the beginning, there are currently many banks that have invested in cryptocurrencies. Today there are thousands of best banks in the world who prefer cryptocurrency investments to provide the best financial services to their clients. Over the years, numerous regulations have prevented banks and traditional financial institutions from investing in regulated and unclassified assets. In this article, we have listed the major banks that have invested in cryptocurrencies and blockchain to enjoy the benefits of digital currencies.
The bank’s investments include the Ripple blockchain network. XRP is currently one of the main cryptocurrencies on the market. The bank recognizes how cryptocurrencies have created a new ecosystem that cannot be replaced by fiat currencies. In July 2020, the venture capital divisions of Standard Chartered PLC, which is also part of global systemically important banks, announced the establishment of a cryptocurrency custodian.
Wells Fargo Banks, USA
After the recent crypto market crash, the US central bank was planning to introduce cryptocurrency funds. Wells Fargo said it would establish a regular fund for additional customer wealth. Its investment research team also mentioned that only accredited investors will be subject to the treatment due to the risk associated with digital currencies.
JP Morgan has focused on developing digital blockchain assets. The company’s onyx division had been under construction for five years when it was founded and employed over 100 people. The division’s main product is the JPM coin, a banking token, and the link, a blockchain-based interbank payment network. Previously, crypto was skeptical of digital currencies, but slowly and gradually, JP Morgan and its group have shifted to trusted digital currencies for the sake of customers.
Barclays is not an ordinary bank, it is one of the best banks in terms of investment, which exposed cryptocurrencies and their potential. Barclays said Bitcoin believes it has high potential to provide benefits from dispersion and extreme volatility.
UBS is making great strides with private stablecoins. Financial institutions from UBS Santander, Lloyds Banking have developed utility tokens for cross-border transactions. While investing in the crypto market, crypto traders and investors are looking for a comfortable market to invest in. UBS aims to provide verified and legal ways to invest in the crypto asset class.
BNY’s Fireblock is a platform that allows financial institutions to issue, move, and store cryptocurrencies. Banks have invested in crypto custody or services where companies take care of their customers’ digital assets for a certain amount of fees.
Morgan Stanley is the first US bank to offer its wealth management clients access to Bitcoin assets. Around March 2021, the bank announced that it was launching access to three funds that will enable Bitcoin owners. But Morgan Stanley only allows its wealthiest clients access to such a volatile asset.
Goldman Sachs hasn’t always been okay with crypto. He denied considering cryptocurrencies as an asset class but ultimately reconsidered. His new report extensively discussed the potential of digital currencies as an institutional asset class by speaking to several crypto and finance experts.
Citibank is the fourth-largest bank in the United States by assets to have invested in SETL, whose ledger technology is used to move cash and other assets. The bank provided a blueprint for organizations considering adopting payments in cryptocurrency or simply in assets such as a store of value indicating that businesses need to think carefully about which digital currency they would like to choose for payments and transactions.
BNP Paribas is a French financial group that has its own crypto startup known as Curv. The institution’s securities services are currently experimenting with security token transfer, taking a step forward to provide custodial services for digital assets.
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