More Big Players in US Finance Giving Crypto a Chance

Several US finance giants have slowly started embracing cryptocurrencies, according to The Business Times.

Cryptocurrencies have become more common because of their significant rise in value in 2020 and 2021. This attracted the attention of everyday people willing to use their volatility for quick and drastic financial gains.

Due to the rising popularity of cryptocurrencies among their clients, financial institutions have started implementing them into their offers and services.

Wednesday marked Interactive Brokers’ announcement that they will start offering online crypto trading by the end of the summer, followed by State Street’s announcement of a digital finance division on Thursday.

In March, Morgan Stanley mentioned its intention to give wealthier clients the option to invest in Bitcoin. Meanwhile, ForUsAll recently achieved an agreement with Coinbase, giving its clients the opportunity of investing up to 5% of their savings into crypto.

Goldman Sachs recently recruited a team to work on crypto trading, and the biggest US bank—JPMorgan—is in talks about implementing cryptocurrency transactions.

On the other hand, Fidelity Investments has had a digital assets division for crypto trading since 2018 and is intending to start offering its customers a Bitcoin exchange-traded fund (ETF).

Some institutions are still reluctant about embracing cryptocurrencies and are choosing a more cautious approach. These include Bank of America, Citigroup, and Wells Fargo.

Will the Cryptos’ Good Trend Continue?

Since the current good trend is due to crypto’s current massive popularity, this also means that the future of this trend depends on the public’s interest. Cryptocurrencies gained mainstream traction once their values shot up, which means that if they were to drastically fall in the same manner, the public could lose interest in them or be reluctant to keep investing.

Cryptocurrency’s volatility is one of the factors that make financial institutions uneasy about embracing them, along with their connection to black markets and lack of government backing.

Despite all this, CFRA Research expects “the large banks as well as smaller financial institutions to continue to adopt them, particularly as the infrastructure and legal/regulatory framework continue to be built out.”

And the regulation is already in motion, as The Basel Committee is working on outlining new rules that will encourage the acceptance of cryptocurrency investments by the banks. This should give crypto investors other options for buying and trading cryptocurrencies, other than the specialized trading platforms currently available to them.

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My eyes rarely take a break from staring at my laptop's screen—I am Big Brother, scanning the web for news and information worth sharing. Full transparency—a substantial chunk of my screentime is also dedicated to watching TV shows, but balance is key, right? Writing is how I choose to share my findings with the world while keeping my love of language and creativity alive.

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