The world's biggest banks enter the cryptocurrency ecosystem: BBVA offers new Bitcoin service, Signature Bank incorporates stablecoin to facilitate instant settlements, Goldman Sachs opens BTC futures trading with Galaxy Digital, and more.
The conference Bitcoin 2021 Miami and El Salvador's initiative to adopt BTC as its legal tender are two of the most recent events in the crypto ecosystem that are opening the appetite of societies for cryptocurrencies, and digital assets, in turn prompting the world's major banks to launch new products using the technology. blockchain.
Bitcoin and cryptocurrencies have gained massive popularity this year, and despite the recent price drop, more investors are hungry for the opportunities that can be accessed through crypto assets. To meet the growing needs of investors in this space, several of the world's largest banks are preparing to launch new digital services.
Some of the most important banks worldwide that are venturing into the world of cryptocurrencies and blockchain are: BBVA, Signature Bank, Goldman Sachs and the Central Bank of Mexico.
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BBVA
Spanish bank BBVA, one of the largest in the world, announced that starting this Monday it will open cryptocurrency trading and custody options, starting with bitcoin, for its private banking clients.
In her release, BBVA explained that its new services will be available only to its clients in Switzerland. In December 2020, BBVA launched a new financial service based on BTC that would allow it to explore the potential and value of cryptocurrencies. At that time, the bank chose to offer selected clients and users a commercial service for the purchase, sale and custody of bitcoins from its headquarters in Switzerland.
Investors have a huge appetite for cryptocurrencies
Although he stated that BTC volatility is a risk, he now acknowledges that “There is a huge appetite from investors for cryptoassets or digital assets, as a way to diversify their portfolios”. Alfonso Gómez, CEO of BBVA Switzerland, explained that for this reason the entity will open its cryptocurrency services to all its private banking clients interested in investing in digital assets.
BBVA said that its new service offering is open as of today and that the system for managing bitcoins is fully integrated into its App. In this way, customers will be able to manage their crypto assets, funds and investments without complications from a single place.
“Bitcoin continues to gain ground as an alternative investment.”
BBVA also noted that it will soon open trading and custody options for other cryptocurrencies besides bitcoin.
This entity has been exploring the world of blockchain technology for several years, and has even participated in the development of several projects and platforms that make use of this powerful technology, which positions it as a leading entity in the adoption of blockchain technology. Gómez noted that BBVA will continue working to improve and expand its offering of cryptoassets to continue being a benchmark within this growing and innovative industry.
Signature Bank
Signature Bank, one of the largest commercial banks in the United States, is preparing to integrate a stablecoin on its blockchain platform Signet, to facilitate instant settlements at low costs.
En release Recently published, the entity reported that it is partnering with the company TrueUSD to integrate the stablecoin TUSD on its blockchain payments platform and enable merchant customers to make instant settlements.
Joseph J. DePaolo, President and CEO of Signature Bank, stated that through this alliance the bank is further strengthening its position as one of the “pre-imminent” entities of the traditional financial system in the ecosystem of cryptocurrencies and digital assets.
TUSD is the first stablecoin backed 1:1 by the US dollar, using live proof of reserves on the blockchain to certify its reserves.
For its part, Signature Bank is the first bank insured by the United States Federal Deposit Insurance Corporation (FDIC) to launch a digital payments platform built on the blockchain. Ethereum, which was approved by the New York State Department of Financial Services. Through Signet, the bank offers its clients an option to make instant, real-time commercial payments using dollars. The blockchain platform operates 24/7 throughout the year.
Goldman Sachs
Goldman Sachs, one of the largest investment banking groups in the world, recently reported that it opened a new cryptocurrency investment product in collaboration with the digital asset firm Galaxy Digital.
In a interview, co-chairman of Galaxy Digital and former Goldman Sachs partner, Damien Vanderwilt, told CNBC that it is partnering with the bank to take the next step in its offering of cryptocurrency products and services.
Vanderwilt noted that Goldman Sachs has begun trading Bitcoin futures with Galaxy Digital and that it is the first time that a world-renowned investment bank such as this has used a digital asset firm as a counterparty to trade crypto assets. Galaxy Digital will function as the liquidity provider for the bank.
The executive noted that Goldman Sachs will push other commercial banks and Wall Street firms to do the same out of “fear of missing out” and also because of the high demand they are seeing from their clients and investors, who are eager to gain exposure to the crypto ecosystem.
Central Bank of Mexico
In Mexico, the country's Central Bank reported on the launch of its first operational stable digital currency backed by Mexican pesos. The stablecoin, called Moneta (MMXN), highlights the central bank's interest in new financial technologies.
Alejandro Diaz de Leon Carrillo, president of the Central Bank of Mexico, assured that the new “cryptocurrency” allows Mexicans, and users in Latin countries, to carry out all types of transactions, send and receive remittances without borders, payment functions and other commercial operations.
MMXN began circulating this weekend, according to the publication from the bank and the currency development company, Mixo. It also reported that MMXN has versions compatible with the Ethereum and Tron blockchain to facilitate its use within the complete alternative financial system that is developed in the digital ecosystem, such as decentralized finance protocols (DeFi) and more.
Mexico developed this stablecoin to solve its citizens' needs for digital assets; but, although it implemented blockchain technology for its development, it clarified that cryptocurrencies as such are not yet supported in the country. However, the launch of its stablecoin means that the country is beginning to open the doors to the value and economic growth opportunities offered by the crypto market.
Other banks and cryptocurrencies
Although the Danske Bank (Denmark) is not launching any products or services with cryptocurrencies, it noted that it will not oppose the operations that citizens carry out with these digital assets. Over the weekend, the bank reported that its position regarding the growth of cryptocurrency trading and investment is that of “do not interfere”, although he still called for caution.
Danske Bank has acknowledged that blockchain has great potential for the development of the financial system and that cryptocurrencies represent a significant digital innovation in current services. However, the typical volatility of cryptoassets and the lack of clear regulations mean that the bank remains cautious regarding this development.
Finally, other banks in the world that are entering the cryptocurrency ecosystem are: US Bank in Minnesota and JPMorgan, located in New York. Both entities are offering digital products and services to bring the world of cryptocurrencies closer to their clients and users.
Continue reading: US Bank and other banks bring Bitcoin closer to investors, clients and users
