Possible Space For Several Coins
CNBC first disclosed that US Bank had teamed up with New York Digital Investment Group (NYDIG) to offer crypto services for Bitcoin, Bitcoin Cash, and Litecoin. Bank of America will introduce assistance for other cryptocurrencies like Ethereum at a future time.
The new initiative comes one year after a proposal allowing national banks to supply custody of crypto possessions by the Office of the Comptroller of the Currency (OCC)– an independent branch within the US Department of Treasury.
Gunjan Kedia, a US Bank top executive of the wealth management department, surveyed the firm’s most prominent clients to gauge their curiosity in cryptocurrencies. Her outcomes revealed rising interest in digital asset services.
In addition, clients wanted the bank to “move quickly” as other banks already provided crypto services. Kedia also discovered that several clients already had Bitcoin and other cryptocurrencies.
“Our clients are getting very serious about the potential of cryptocurrency as a diversified asset class. I don’t believe there’s a single asset manager that isn’t thinking about it right now.” – Kedia informed CNBC in an interview.
Crypto “Too Large To Ignore”
The US Bank claimed crypto custody will be accessible to institutional managers with personal funds in the United States or the Cayman Islands, seeing as the Securities and Exchange Commission (SEC) has yet to accept a Bitcoin ETF. The need has been so great that Kedia included that some clients want custody contracts approved if the SEC finally ratifies a crypto ETF.
The boom for blockchain technology and digital assets in the standard economic system has had its setbacks. However, most institutional investors have recognized their future use in their companies. Such holds true with Arab Bank Switzerland, recently allowing its clients to stake, store, and trade XTZ, Tezos’s native utility token.
The US Bank has begun to recognize the full potential of crypto. As CryptoPotato outlined from a report called “Digital Assets Primer: Only the first inning,” digital assets and the DeFi space have expanded to where they are “too large to ignore.”
Nathan recently got into crypto by investing in stablecoins/altcoins using an algorithmic trading strategy. Shortly thereafter, he began writing about blockchain technology and all things crypto. He has become involved in a number of crypto-related projects and continues to be passionate about all things crypto.