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Banking institutions want to be the bridge between Bitcoin and retail investors:
- According to a JPMorgan report, some 300 banks are reportedly working to bring cryptocurrency custody services to retail investors.
- Some local banks, such as Synovus, are working fast on adoption by mid-2022.
- Another group would be carrying out this task with companies like NYDIG. Both large and small banks do not want to miss out on the adoption that cryptocurrencies will experience in the coming years.
In a recent report, JP Morgan analysts led by Steven Alexopoulus say that banks are racing to jump on the crypto bandwagon. In the publication, quoted by Barrons, it is ensured that some 300 banks are working fast, since they want to become a bridge to Bitcoin.
It should be noted that people, from small to large investors, access cryptocurrencies through companies native to that market. In that sense, the main players are exchanges such as Cex.io, KuCoin and in the United States Coinbase and others. Along with them, some fintechs also have their place among users and investors.
However, traditional banking remained on the sidelines for various reasons. Among the most prominent is the rejection of the decentralization represented by assets such as Bitcoin. Likewise, the uncertainty of the regulations, the risk and the volatility in the price of these virtual currencies can be highlighted.
From anti Bitcoin shield to investment bridge
Now times seem to be changing fast, with banks changing sides. Thus, financial institutions want to be a bridge to Bitcoin. Consequently, these 300 banks referred to by JPMorgan would be working with firms such as NYDIG to finalize their service offerings in cryptocurrencies.
It should be noted that NYDIG is a firm dedicated to cryptocurrencies and whose foundation is to provide services related to traditional institutions. In other words, it can be seen as a link between old and new finance. Until now, this firm has been offering services to banks in the creation of sub-custody options.
In its description, the firm calls itself the gateway to Bitcoin. In relation to the steps that banking is taking in the crypto direction, the appointed JPMorgan analyst is emphatic. “While fintechs and native crypto companies are at the forefront of connecting retail investors to crypto, some forward-thinking banks are now following them hand in hand with companies like NYDIG,” he expresses.
In this way, the trend towards the consolidation and future massification of cryptocurrencies made the banks change their minds. Despite the hostility they may have towards cryptocurrencies, the language of rejection is becoming less common. Instead, banks now plan to be a bridge to Bitcoin for their users.
From bubble to becoming the most coveted asset
Until recently, the general consensus among the banking world was that Bitcoin and the entire crypto market were in a bubble. Even today some continue to see them in the same way. However, hundreds of banks seem to realize that this asset goes beyond cursory simplistic analyzes based on “tulipmania”. Thus, in the traditional banking narrative, Bitcoin is moving from being a bubble to being the future.
In any case, when talking about the future, it is not about a decade, but about periods as short as the first half of this 2022. Banks like Synovus, a firm that manages more than $57 billion dollars, ensures that its crypto approach It is based on this year. It should be noted that there is a significant number of small banks that have some options in place.
At the same time, the big banks are not willing to be left behind. These also want to be the bridge to Bitcoin, including the most hostile. With this in mind, you can get an idea of the path that the large-scale adoption of cryptocurrencies is heading towards.
On the other hand, it should be taken into consideration that it is probably not a vertical advance. Even though adoption seems unstoppable with these types of moves, the impact of other factors such as regulations should also be expected, which can be a major obstacle to adoption.
