US Bank Entering the Crypto Space - As Institutional Demand Surges.
US Bank the fifth largest bank in the United States has announced that they will be launching crypto custody services to fund managers.
This announcement is no surprise aligning with the likes of JP Morgan and Wells Fargo. With JP Morgan Chase offering a Bitcoin Fund to it’s clients this year. Wells Fargo has also made an announcement that they will be offering crypto services to their high wealth clients sometime in 2021.
I’ve noticed a smell of urgency in the air as of late that tells me that big banks are racing to cater to very large players that want to enter the space.
A Crypto Atm inside some of our US banks wouldn’t be passed the realm of possibility sometime in the near future.
As far as news articles stating that Banks are “finally warming up” to Crypto. Don’t believe that for a second. These things aren’t decided over night. It takes years to build out the infrastructure in order to offer these services. These decisions were made a considerable amount of time ago when the lords of finance knew that bitcoin and related technologies could not be stopped.
Asset managers all over the world have been drooling over the idea of holding crypto and now years later they will have that opportunity with some of the largest banks in the world acting as custodians. Believe me when I say there will be trillions of dollars entering the space and what do you think will happen to crypto currency prices?
Also note that this move is very strategic on the traditional institutions part. They already have access to existing clients. Many people will not be comfortable with buying and storing their own crypto currencies.
So why not have their own personal bank do it for them. Once these banks roll out these services to their wealthy clients. Believe me their next move will be offering these services to typical banking customers as well as retail investors.
It is definitely a very exciting time and remember this is only the beginning.
Let’s see what the rest of the year has to bring!
Jk
