“Major financial institutions are waiting to invest in the crypto market”, financial journalist Rebecca Harding said in an interview with Forbes.
Being the CEO of Coriolis Technologies as well- a trade technology company that is specialized in the traditional finance sector, Harding explained that the “the vast majority of banks are healthily skeptical and curious about crypto.”
From her point of view, banks have actually started to acknowledge the demand of investing into the crypto market to line up with the development of the blockchain technology. However, regulators and financial authorities hold the key for the start.
Morgan Stanley, Goldman Sachs, and Citigroup are Game in Crypto!
According to CCN, giant names in the U.S financial sector like Goldman Sachs, Citigroup, and Morgan Stanley, have already taken steps in developing a noticeable collection of products, of which “trusted custodian solution” was one, to cover the needs of the institutional investors in the cryptocurrency market.
In detail, Morgan Stanley has reportedly developed the base needed to provide complex derivatives tied to Bitcoin, planning to launch Bitcoin swap trading as soon as there is enough demand from institutions for crypto, as the bank observes.
Harding commented saying “banks are closely working with newly emerging fintech companies to study the cryptocurrency market and will soon allocate capital into the asset class.”
She added: “A lot of banks are healthily skeptical about bitcoin and blockchain. They see the need to invest in it to keep up with technological developments, but they’re waiting to see where regulators fall and are working closely with financial technology (fintech) companies to make sure they’re not behind the curve. There is a lot of money being poured into blockchain and cryptocurrencies,”
Media resources reported in July, that the commercial banks in South Korea were holding more than $2 billion in Bitcoin and Ethereum.
In a report published earlier this year, Bank of Korea- the central bank of the country, informed that banks invested in small amounts in cryptocurrency compared to how similar investments were in other countries, and that local investors showed a positive look toward the noticeable of crypto assets giant banks hold.
“The amount of crypto-asset investment is not really big, compared with other equity markets, and local financial institutions’ exposure to possible risks of digital assets is insignificant. Against this backdrop, we expect crypto-assets to have a limited impact on the South Korean financial market,” reads the report Bank of Korea published.
Banks Think Big
Harding continues saying that the number of banks which have begun to invest and hold cryptos is increasing, as they touch their business pattern can be at risk over the years, if they fail to address what the market demands in the third millennium.
“Banks are at risk of becoming nothing more than large fintech companies, people in the industry tell me,” she explained.
“If a leading market like the US imposes a major change in its regulation to further legitimize the cryptocurrency market, possibly by enabling a Bitcoin exchange-traded fund (ETF), experts believe that more banks will acquire cryptocurrencies as a long-term investment.”, financial analysts read.