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US banks have gotten into crypto. The growing popularity of the crypto market has resulted in increased demand from bank customers for greater exposure and although banks are prohibited from directly maintaining the self-custody of cryptocurrencies, they are turning to solutions. third parties to gain exposure. The latest in a long line of banks to deploy crypto products is US Bancorp.
The bank has announced that it will launch a bitcoin custody service for its customers. In partnership with sub-custodian NYDIG, the bank launched its first crypto custody service a year after a key regulator announced that U.S. banks were allowed to hold digital assets. US Bancorp is the 5th largest bank in the United States with more than $ 8.6 trillion in assets under custody.
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Growing customer demand
CNBC reported that the bank conducted a survey to gauge its customers’ interest in crypto products. The survey revealed huge interest among the firm’s biggest clients, prompting the bank to start working on ways to provide its clients with exposure to the crypto market. Gunjan Kedia, vice president of US Bancorp’s wealth management and investment services division, explained that some of his clients have already invested directly in the crypto market, but others have been waiting for the release. childcare services. The custody service will enable private crypto-key investment managers, in conjunction with NYDIG.
BTC price balancing above $54,000 | Source: BTCUSD on TradingView.com
“What we were hearing everywhere was that while every currency might not survive – there might not be room for thousands of coins – there is something about the potential of this class of coins. ‘assets and the underlying technology that it would be prudent for us to support for that. “
US Bancorp will add support for other cryptocurrencies over time. Interest in cryptos and crypto products is wide and investors are starting to see the potential of cryptos as a diverse asset class. “I don’t think there is a single asset manager who isn’t thinking about it right now,” Kedia said.
Institutional investors bet on crypto
Interest from institutional investors is on the rise. Inflows into the market had subsided during the lows of July. But the past few weeks have seen market inflows recover from previous lows. The last 7 weeks of influx totaled $ 411 million, and confidence in bitcoin is returning among the big players.
Related reading | Bitcoin Loses Speed As Institutional Investors Focus On Ethereum
US Bancorp is not the only big player in the race for crypto safekeeping. Bank of New York Mellon, State Street, and Northern Trust are major banks that have also announced plans to launch their own cryptocurrency custody services.
Kedia also expressed that US Bancorp has seen a lot of interest from its clients in crypto ETFs. ETFs are currently still on hold for the SEC, but clients are willing to jump in and invest in them. “We have a lot of funds hoping to invest in ETFs. Some literally want custodial contracts to be signed on the day the SEC approves an ETF. “
Featured image from ATM Marketplace, chart from TradingView.com
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