US Bank, JPMorgan and Société Générale are three of the world's leading banks that recently announced new financial services with Bitcoin, to bring the potential of this cryptocurrency closer to their clients and users.
Bitcoin (BTC), The main cryptocurrency of the markets by capitalization, is gaining greater strength and importance among the most important banking entities in the world, which until recently remained skeptical of the financial potential offered by this digital asset. However, reality is changing, and new banks are joining the crypto market that is constantly growing.
US Bank, custody of Bitcoin and cryptocurrencies
The most recent banking entity to announce new services with Bitcoin is US Bank, the fifth largest bank in the United States, which on its website revealed its new offer of products and services with Bitcoin and other cryptocurrencies. On its website release, US Bank reported that will offer a new cryptocurrency custody product, focused on clients who have the service of hiring a sub-custodian for the funds service.
US Bank also will serve as the fund manager for NYDIG's Bitcoin ETF this year, if regulators give the company approval to create the crypto fund. The entity also reported on its participation in the investment round of security, a developer of financial and regulatory technology based on blockchain institutional grade.
It may interest you: JPMorgan prepares a “basket” of shares with companies related to cryptocurrencies
Bitcoin and Blockchain at JPMorgan
JPMorgan, the largest bank in the United States, could launch a Bitcoin investment fund before September, according to they report various sources.
The banking entity, which revealed at the beginning of March its intentions to launch an investment basket of shares of companies related to Bitcoin and Blockchain technology, seems to be also considering launching an investment fund in Bitcoin, which will have NYDIG as custodian of the digital assets.
In recent months, the directors of this entity have been reflecting on the potential offered by cryptocurrencies and blockchain, changing their perception of Bitcoin from years ago, when they referred to it as a fraud. Earlier this month, JPMorgan analysts they recognized that Bitcoin's volatility, one of the biggest concerns for investors, has fallen significantly in recent years, and that cryptocurrency is becoming a more mature, less volatile and more attractive market for investors, leading JPMorgan to consider creating new cryptocurrency services.
Analysts also believe that Bitcoin could reach a value of more than $400.000 this year, displacing gold as the world's leading reserve asset.
Regarding blockchain adoption, this week the banking entity revealed which is creating a blockchain platform for global payments and interbank transactions, alongside the DBS, Singapore's largest and most important bank. On Monday, JPMorgan had published a job advertisement for hiring blockchain developers with knowledge and experience in Ethereum, Rope e Hyperledger.
Société Générale and BNY Mellon also add Bitcoin to their offering
In turn, the Société Générale, one of the largest banks in Europe, confirmed in the middle of this month that it will launch new structuring, issuance, exchange and custody services for Bitcoin and other cryptocurrencies for the bank's professional clients in 2022.
El Bank of New York Mellon is another of the largest US banks preparing to launch cryptocurrency custody services and a digital asset platform.
Bitcoin: Safe haven against inflation
One thing that US Bank, JPMorgan, Société Générale and Bank of New York Mellon have in common is that new cryptocurrency services are driven by the interest and demand of their clients and users, who want to gain greater exposure to cryptocurrencies and digital assets.
Coin Metrics, one of the largest data providers in the crypto industry, noted in late 2020 that Bitcoin was emerging as a potential investment asset and safe haven. According to the report of the company, traditional and institutional investors were moving closer to the cryptocurrency, and backing it as a good hedge against inflation.
The investment firm Fidelity Digital Assets agrees with this, citing that potential inflation is one of the main reasons why companies are placing their trust in Bitcoin, keeping part of their balance sheets in this asset. microstrategy, Square y Tesla are clear examples of bitcoin as a safe haven for future value, with more than $3.500 billion deposited in the cryptocurrency.
Likewise, Christine Waldron, director of strategy for the Bank's Global Fund Services in the United States, points out that much of this crypto-adoption is driven by the needs of its users and clients, who are increasingly showing greater interest in being exposed to new technologies.
Waldron believes that changes in the regulatory environment are opening up new opportunities for banks to “continue to meet the needs of their customers” by safeguarding their most valuable assets, which today, and for tens of millions of Americans, include cryptocurrencies and digital assets.
A proven estimate
The analysts of Goldman Sachs, one of the world's largest financial investment and securities companies, noted that at least 19 stocks closely related to cryptocurrencies and digital assets had outperformed S & P 500 in terms of performance.
The note shared with its clients points out that at least 19 US stocks had market capitalizations of more than $1.000 billion, and all of these were closely related to blockchain and cryptocurrencies. The performance of these crypto stocks is 43% so far this year, more than 3 times the gain of the S&P 500, which is 13% in the same period.
Similarly, in a report published this week by the SBI Group Japan's financial institution revealed that its cryptocurrency earnings had doubled this fiscal year, which ended in March, compared to the previous fiscal year.
SBI Group earned $174 million in profits, up $92 million from the previous year, thanks to the positive impact of its involvement in the cryptocurrency industry, through its services of SBI VC Trade, which allows trading in cryptoassets, among others.
Continue reading: Central Bank of Iran authorizes use of Bitcoin in the payment of imports
