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Banking, Bitcoin, Featured

Notable Banks Looking Forward to Driving Bitcoin’s Bull Ride

Traditional banks are planning to look closely at digital Crypto assets for quite a while now, however, some have been skeptical regarding commenting in public. Presently, they tend to be united with the general shift towards cryptocurrency within the latter half of the year that includes payment joints and hedge fund organizations. There have been some of the biggest transformations taking place within the advanced countries, thereby making the industrial players witness the quick development. A majority of these developments have been taking place in Singapore and Switzerland. Read on to find more below. 

Some of the biggest moves are happening in technically advanced Singapore and Switzerland, and the industry is witnessing a developing list of lenders going towards cryptocurrency. Singaporean banks have lately announced their cryptocurrency trading as well as custody platform, intending it to make a front runner, thereby making FinTechs enter the Crypto market soon. Some of the investors are looking forward to investing in such organizations, thereby leading to the opening of the Crypto segment throughout the world. 

Among the leading banks to emerge from scratch is Standard Chartered, thereby being one of the first banks headquartered in London. Standard Chartered has also announced its Crypto custody partnership with a Northern trust based in the United States of America. This Bank also happens to be working with six of the biggest exchanges and trading desks in cryptocurrency concerning a settlement and post-trade system, which happens to be additionally slated to go live, initially in 2021. 

Standard Chartered Launching Crypto Trading For Investors

The Standard Chartered Bank of London has accumulated a group of cryptocurrency exchanges for an innovative digital asset trading platform, made for the institutional market. The Crypto trading group of the bank comprises four exchanges and five of the greatest over-the-counter traders. There are various trading projects and firms involved in their custody. The initial test trade is likely to be in the upcoming months and it is likely to incorporate the 10 greatest Crypto exchanges in digital. 

Institutional Trading with Institutional Infrastructure

Enabling elements of institutional trading backed by institutional infrastructure, the head of Standard Chartered is taking a step. According to them, any exchange interested in the institutional space happens to be a potential client. It is tough to be particular regarding the exchanges in terms of which the bank happens to be working with. 

They have also been in touch with quite a number of digital players as well as exchanges. Finally, everything is supposed to come together anticipating the best degree of compliance, regulatory requirements, and safety. Each of these will turn out to become inherent portions of the value chain and ecosystem. 

The big banks are ready for the great adoption but the actual banking of cryptocurrency still happens to be some way off, possibly a couple of years down the road. In most cases, the banks happen to be extending existing custodial services by leveraging their Technology prowess. 

Engagement within the cryptocurrency space indicates owning and taking delivery of a cryptocurrency asset. Many organizations are jumping on such technological services and witnessing the banks launching a cryptocurrency. However, they are not doing so, rather they happen to be future-proofing their business, thereby extending their services.  

Also Read: Perks of Banks and Fintech Firm Collaborations

Regulatory Clarity and Further Options

Previously in 2020, the US office of the comptroller of the currency pushed banks and organizations for embracing an atmosphere that happens to be more Crypto friendly. During July, it was declared that banks nationally regulated it and they are ready to offer Crypto custody. 

As per reports, it also proves that additional guidance from the office of the controller of currency would assist more conventional banks to enter the cryptocurrency custody space. Banks also indicated in August that they might be willing to provide Crypto custody services in response to the advance notice of proposed rulemaking during June. It also asked the general public for weighing in on how cryptocurrency and additional fintech tools can be utilized in the financial sector. 

When it comes to further options, crypto firms additionally have new banking options for the upcoming year. There have been many firms historically looking forward to Bank in the cryptocurrency sector, with Metropolitan Commercial Bank, Signature Bank, and Silvergate Bank leading. Moreover, bankers have been suspicious of not being capable of tracing the source of funds that cryptocurrency organizations work with, thereby having to work extra for anti-money laundering and know your customer checks to onboard cryptocurrency businesses. But, all the Crypto friendly banks only hold a fraction of the 2.87 trillion dollar assets controlled by some of the largest banks worldwide. In the meantime, US banking giants have also added their initial cryptocurrency exchange customers. The fact that Crypto exchanges happen to be regulated within the US remained a factor apparently in the approvals taking a lengthy period of vetting, but with time, the accounts for cryptocurrency forms were approved and presently are in use. 

It was also revealed that many organizations were banking cryptocurrency exchanges as they happened to be regulated by multiple regulators. With involvement from US regulators, significant US banks happen to feel more comfortable by providing services to the industry. Many digital securities forms have also been Bank by organizations from 2017 due to its regulatory advancement. 

Also Read: HashCash’s HC Commerce Offers Advanced Merchant Solutions to Banks & Enterprises

Checking accounts and custody are still financial services that include tight margins along with the Crypto industry happening to be a new asset niche on which traditional banks still need to figure out how to acquire risk-adjusted returns. While traditional banks are not driving the current Bull run of Bitcoin, there has been an increasing family later with the sector that has been witnessed by many like and endorsement of legitimate asset classes. 

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