It’s mind-blowing how traditional financial institutions are snatching up a portion of the cryptocurrency market. However, when Bitcoin was introduced in 2009, banks repeatedly cautioned early cryptocurrency investors that cryptocurrencies are novel and unregulated assets.
Over time, several regulations made it difficult for big financial institutions to enter the crypto space. However, these economic sectors have discovered a way to integrate this technology into the banking system to avoid falling behind.
Today, the world’s top traditional financial sectors have embraced cryptocurrency investments to offer their customers the best financial services.
This article will highlight the big players who have joined the cryptocurrency market to benefit from it.
Standard Chartered Bank
This London-based bank tops the list as an investor in the blockchain network Ripple and Cobalt, a trading platform. In July 2020, the initiative divisions of the bank announced the launch of cryptocurrency custody services. Currently, Standard Chartered is creating a cryptocurrency exchange and brokerage business that will provide its customers access to cryptocurrencies like Bitcoin and Ethereum.
One company on its list is Coin Metrics, which provides institutional clients with blockchain data. Goldman Sachs made history by launching the very first over-the-counter cryptocurrency trading. You can see this as making headway in the development of digital assets.
Citibank, the fourth-biggest bank in the US by assets, has invested in SETL, a company whose blockchain technology is employed to transfer funds and other assets. The bank developed a road map for companies intending to integrate bitcoin payments as a store of value. It also suggested that companies should carefully assess which digital currency they want to use for payments and transactions.
Morgan Stanley is the first US bank to provide its clients with access to Bitcoin subsidiary asset managers. In March 2021, the bank said it would open three assets to Bitcoin owners. However, Morgan Stanley only gives such volatile access to its wealthy clientele. The crypto investment roster of Morgan Stanley includes NYDIG, Figment, R3, and Securitize.
BNY Mellon invested in the Fireblock platform, enabling it to issue, move, and store bitcoins for its clients. Banks have started investing in the cryptocurrency custody sector, which consists of businesses that manage the digital assets of their customers for a fixed fee. Also, BNY has added Coin Metrics and Talos to its investment portfolio.
In November 2021, Commonwealth Bank (CBA) revealed plans for its cryptocurrency pilot, providing its clients the chance to invest in cryptocurrencies. CBA partners with the American crypto exchange Gemini and is an investor in Gemini’s funding.
According to the Guardian, the CBA cryptocurrency app has been put on hold amid market turbulence and uncertainties.
BNP Paribas has joined the world of digital assets by partnering with the blockchain platform Fireblocks and the crypto custody company Metaco to offer its clients cryptocurrency custody services. They are partnering with Digital Asset to create real-time trading and payment applications based on Smart contracts and the DAML programming language.
Barclays invested in RealBlocks, a software platform that links brokers and clients to alternative investment asset managers. The UK-based bank is reportedly planning to invest in cryptocurrency custody company Copper offers custody, prime brokerage, and settlement services to institutional investors trading in digital assets.
JPMorgan has concentrated on creating blockchain-based digital assets. The Onyx branch of JPMorgan Chase developed the JPM coin, a bank token, and link, a blockchain-based interbank payment network. This biggest bank in the US has supported ConsenSys, a firm that develops software for Ethereum.
UBS is progressing rapidly with private stablecoins like USDT. UBS intends to provide secure and legitimate ways of investing in cryptocurrency assets. The roster of this Swiss banking giant includes Axoni, whose technology is utilized to upgrade capital market infrastructure.
Covault, whose technology is used to save, exchange, and validate identities, is on the list of Spanish lending institutions, BBVA. In June 2021, BBVA Switzerland’s crypto-asset service, which includes trading and custody, was functional for all customers. The investing portfolio began with Bitcoin has later added Ethereum.
Even though the cryptocurrency industry is still developing, it has significantly impacted the traditional financial sectors. While some banks are actively investing in cryptocurrency firms, others are adopting a waiting game approach because their participation in the industry is currently prohibited by regulation. However, these big-name players’ actions have shown that they don’t see cryptocurrency as a threat. Banks can significantly impact the cryptocurrency market by providing pressing security and trust to an unregulated crypto market.