How US Banks Are Investing in The Crypto Market

If you have consistently followed the news within the financial industry in recent times, by now, you would have known that the cryptosystem is here to stay. In its relatively short span of existence, crypto has not only birthed more landslide innovations, but has enjoyed wide acceptance and use even from institutions that did not initially support it. Amongst the most convincing of all is the present move among banks in the U.S. Since 2020, several mainstream banks in the U.S have begun investing in the system.

In subsequent paragraphs, we will see how traditional, centralized banks are opening up to the concept of decentralized finance by examining 5 top-tier banks.

Standard Chartered

Standard Chartered PLC is a global financial institution well known across several continents of the world. The bank not only has huge investments in blockchain network Ripple (XRP) but announced in July 2020 the creation of a cryptocurrency custodian by the venture divisions of the Standard Chartered PLC.

JP Morgan

JP Morgan is another frontline bank in the United States. However, unlike Standard Chartered PLC, JP Morgan is going full scale into crypto. It has major investment in the development of digital blockchain assets. It is not restricting its involvement to the role of custodian. Instead, the company has invested in assets that it calls the JPM coin, a bank token, and link (a blockchain-based interbank payment network.) Although the company confessed to its early skepticism, JP Morgan and group decided to open up to change for preserved relevance and improved services to clients.

Goldman Sachs

Yes, another big bank on the train. Although, before the inception of this evolutionary move, Goldman Sachs had never been known to support crypto. It even denied acknowledging cryptocurrencies as an asset class. However, the bank has eventually reconsidered its position. Hence, in its new report the bank discussed the huge potential in dealing digital currencies and its value as an institutional asset class.

Citibank

As of the time of writing, Citibank is the fourth-largest bank in the US by assets. The well recognized bank has invested in SETL and not just this. The bank has provided a template of operation for other organizations that may likely adopt a cryptocurrency payment policy.

BNY Mellon

BNY Mellon uses BNY’s Fireblock as a crypto custody domain for fellow financial institutions to issue, move and store cryptocurrencies. This platform helps banks with no crypto custody services to keep and track their clients’ digital assets at a service fee.

More to come?

Upon the launch of the cryptosystem, the traditional financial institutions piqued against the value and performance of the new system. However, see how well it is all turning out. With the biggest US banks delving into the crypto space, this looks like just the beginning!

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