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When Bitcoin was first launched in 2009, financial institutions were spooked and were quite skeptical about its value and performance. Financial institutions like global banks kept warning initial cryptos investors regarding the fact that they are a new and unregulated asset class. One significant reason banks and other traditional financial institutions may have stayed away from cryptocurrencies and blockchain technology for so long is that they are a massive threat to them. In centralized financial systems, money always goes through the banks. But since cryptocurrencies provide a new, efficient and decentralized method of payments and transactions, most individuals were getting attracted towards investing in these digital currencies. But despite the many arguments portrayed by the centralized financial institutions in the beginning, there are currently many banks that have invested in cryptocurrencies. Today, there are thousands of top banks in the world that prefer cryptocurrencies investment to provide the best financial services to their clients. Over the years, there have been many regulations that have prevented banks and traditional financial institutions from investing in regulated and unclassified assets. In this article, we have listed the top banks that have invested in cryptocurrencies and blockchain to reap the benefits of digital currencies.
Investments at the bank include blockchain network Ripple. XRP is currently one of the top cryptocurrencies in the market. The bank acknowledges the way cryptocurrencies have created a new ecosystem that cannot be replaced by fiat currencies. In July 2020, the venture divisions of the Standard Chartered PLC, which is also a part of globally systematically important banks, announced the creation of a cryptocurrency custodian.
After the recent crash in the crypto market, the central US bank planned to introduce cryptocurrency funds. Wells Fargo stated that it would establish a regular fund for extra wealth for clients. Its investment research team also mentioned that only qualified investors will be subjected to the treatment due to the risk associated with digital currencies.
JP Morgan has focused on developing digital blockchain assets. The company's onyx division was under construction for five years when it was founded and employed more than 100 people. The division's main product is the JPM coin, a bank token, and link, a blockchain-based interbank payment network. Earlier the crypto was skeptical about digital currencies, but slowly and gradually, JP Morgan and group decided on trusted digital currencies for the betterment of the clients.
Barclays is not any ordinary bank, it is one of the best banks in terms of investment, that has exposed cryptocurrencies and their potential. Barclays stated that Bitcoin believes that it has high potential in providing benefits from dispersion and extreme volatility.
UBS is making great strides with private stablecoins. UBS' financial institutions Santander, Lloyds Banking have developed utility tokens for cross-border transactions. While investing in the crypto market, crypto traders and investors look for a comfortable marketplace to invest in. UBS aims to provide verified and legal means to invest in the crypto asset class.
On BNY's Fireblock is a platform that allows financial institutions to issue, move and store cryptocurrencies. Banks have been investing in the crypto custody domain or services under which companies look after their clients' digital assets for a certain amount of the fee.
Morgan Stanley is the first US bank to offer its wealth management clients to access Bitcoin assets. Around March 2021, the bank announced that it was launching access to three funds that will enable owners of Bitcoin. But Morgan Stanley is only allowing its wealthier clients access to such a volatile asset.
Goldman Sachs has not always been on board with crypto. It denied considering cryptocurrencies as an asset class but finally reconsidered its decision. Its new report discussed extensively the potential of digital currencies as an institutional asset class by talking to several experts in crypto and finance.
Citibank is the fourth-largest bank in the US by assets has invested in SETL, whose ledger technology is used to move cash and other assets. The bank has provided a blueprint for organizations that are considering adopting cryptocurrency payments or simply in such assets as a store of value stating the enterprises should carefully consider which digital currency they would like to choose for payments and transactions.
BNP Paribas is a French financial group that owns its own crypto startup known as the Curv. The institution's securities services are currently experimenting with the transfer of security tokens, taking a step forward to provide custodial services for digital assets.
