According to a recent study by the analytical platform Blockdata, 55 of the top 100 banks in terms of funds under management are involved in the development of the crypto market in some way. We are talking about direct and indirect investments, the study of innovations, as well as the purchase of crypto startups.
The global banking giants are gradually pouring into the cryptocurrency industry through investments in crypto startups and digital assets themselves.
Note that the participation of large banks in the digital asset industry is a reality that is already happening. As we learned the day before, the American cryptocurrency exchange Coinbase announced a collaboration with PNC Bank, which is the fifth in the ranking of US commercial banks in terms of assets under management.
This means that at the moment bank representatives are working on new solutions for the institution. And as analysts suggest, as the niche of digital assets develops, there will be more and more services related to cryptocurrencies in banks.
Indirect evidence for this theory is already known. For example, in May, sources announced the desire of the management of the Goldman Sachs bank to provide rich clients with the opportunity to profit from the change in the value of cryptoassets. You can bet on the future value of BTC using futures contracts. Read more about the topic in a separate article.
Banks keep pace with the times
A Blockdata study ranked banks Barclays, Citigroup and Goldman Sachs among the most active supporters of financial innovation, with JPMorgan and BNP Paribas also among the organizations monitoring the digital asset market. According to Cointelegraph journalists, there is a clear tendency in the world towards a gradual merging of the interests of the banking sector and the future of the cryptocurrency market.
The study also shows that crypto custody is the mainstream for banks delving into the crypto space. Nearly a quarter of the top 100 banks either develop custody solutions or support startups offering custody services for digital assets.
Let us remind you that custodial services are the custody of a client’s asset at his direction. In fact, in the future, banks will be able to make money on cryptocurrencies precisely by selling coins to users and storing them. Therefore, now the increased attention of representatives of financial organizations to digital assets is not surprising: they still cannot go against trends, but prefer to make money on them.
Blockdata analysts attribute the growing interest of banks in crypto and blockchain to three main factors – the rapid growth in the profitability of cryptocurrency startups, advances in the regulation of innovation and the demand among clients of these very banks for access to mechanisms for investing in digital assets. So, in fact, they not only approve of what is happening in the coin industry at the moment, but also note its development in terms of the attitude of regulatory bodies.
As you can see, the development of Bitcoin and other cryptocurrencies can quite successfully coincide with the interests of representatives of the traditional financial system. Moreover, BTC is already acquiring the role of not a “destroyer”, but a “transformer” of opinions about what the global economy of the future should be like.
We believe that the trend in the world of finance is now forming quite clearly. As the cryptocurrency market continues to grow, the industry will attract more and more users, which in turn will force banks to accelerate. And when the latter create the infrastructure for working with digital assets, the development of the niche will occur even during bearish cycles. Under such conditions, mass popularization of the crypto will be a more feasible step than it is today.