Prominent U.S. Banks Bolster Their Foray into Cryptocurrency Services
In a striking move capitalizing on the easing of regulations, renowned U.S. banks are delving deeper into the domain of cryptocurrency services. They are preparing to provide comprehensive custody solutions for heavyweight investors and trading giants. As divulged by an exposé by The Information, banking heavyweights such as State Street (STT), BNY Mellon (BK), and Citigroup (C) are all set to roll out state-of-the-art digital asset custody systems.
This innovative venture aspires to present a robust and secure method to keep cryptocurrencies for their diverse client base. This not only threatens to disrupt the prevailing supremacy of crypto-centric entities in the utmost important custody market, but it could also pave the way for traditional banks into the crypto custody space, an industry still in its infancy.
The Onto the Banks Cryptocurrency Services Landscape
The impending entry of these tried and tested banking institutions into the crypto custody field has the potential to reel in notable capital influxes from institutional clients. This broad-based clientele could range from hedge fund organizations to philanthropic institutions such as endowments. This advancement could, in turn, amplify the stature of the aggregated cryptocurrency market, which currently stands at an impressive estimate of around $3 trillion.
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In addition to this, banks are meticulously probing into offering a wider array of crypto-based facilities encompassing areas like trading and lending. This exploration would naturally remind them of impending regulatory oversight and the requirements therein. As they probe deeper into the crypto service terrain, traditional banks may seek to join forces with existing crypto establishments to construct infrastructure and delegate functions.
This may have a huge impact on state tresory
For instance, well-acclaimed crypto firm Coinbase (COIN) has been reported to be holding a series of discussions with numerous U.S. banks to explore the possibility of potential tie-ups. In the face of this, dedicated crypto companies are working tirelessly to avoid being overshadowed by conventional banks. They are persistently urging regulators to greenlight banks to launch comprehensive crypto custody and trading services by letting them delegate specific functions to these crypto outfits.
