With interests in Bitcoin (BTC) skyrocketing, leading the cryptocurrency to set a new all-time (ATH) of above $51,000, large financial institutions, especially banks, are considering offering Bitcoin-related services.
Co-founder of Elliptic, Tom Robbinson, told Telegraph today that several global financial institutions have reached out to him to explain the compliance risk of launching Bitcoin services.
“I’ve seen a massive uptick in inquiries from several financial institutions that are seriously considering launching some type of cryptocurrency service,” he said.
According to Robbinson, Asian banks first indicated an interest in offering bitcoin-related services four months ago, followed by US financial institutions, which started making inquiries in the last two months.
He continued that UK banks have followed suit recently, as these financial institutions continue to look for ways to dabble into the cryptocurrency world without going against money laundering rules.
Traditional financial institutions are urged to venture into the cryptocurrency ecosystem considering the massive interests in these assets. Notable financial institutions have also declared interests in Bitcoin in the past.
In a shocking move, the world’s largest custodian bank, the Bank of New York Mellon Corp. (BNY Mellon), announced last week that it would store, process, and issue Bitcoin on behalf of its institutional clients.
Similarly, German multinational investment bank Deutsche Bank also ventured into the bitcoin business and has since been a strong advocate of the asset-class.
The bank once predicted that fiat usage would die-off in 2030 while tipping cryptocurrency to dominate banknotes in the next ten years.
While it may seem surprising to see increased crypto interests from traditional financial institutions despite heavily criticizing these assets, Mrs. Prendergast Millard, managing director at the risk and compliance firm Guidepost Solutions, said it is logical for banks to also embrace cryptos just like exchanges.
Millard noted that banks are trying hard to keep “millenials and the crypto generation” as their customers considering the spike in interests for crypto investments.
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Author: Lele Jima