Wall Street’s two largest banks have begun developing products related to custody services and helping crypto investors in their trading activities.
Goldman Sach and JPMorgan are hiring new employees specializing in blockchain and virtual currencies to help clients manage cryptoassets. Earlier, funds were offered tools for working with bitcoin derivatives. Banks are now exploring a new area of virtual asset savings and accounting.
According to analysts, if the giants do everything right, they can «unblock» billions of dollars in investments from funds working only with qualified custodians and legal means of holding funds. This will also give them access to new types of fees..
Many investors fear the crypto market not so much because of volatility as because of security concerns. The owner cannot materialize coins to protect them from hackers, so there is a growing demand for cold storage facilities located in bunkers and protected from electromagnetic pulses..
However, Goldman and JPMorgan are not the only ones exploring this direction. The first to enter the market may be the Japanese broker Nomura, which has been planning to introduce such services for a long time. There is also a Swiss stock exchange, part of the SIX Group (co-owner of 130 banks), which last month announced plans to open a platform for trading cryptocurrencies, as well as their placement and storage. Coinbase Custody plans to attract $ 5 billion of virtual assets from large investors by the end of the year.
So far, institutional investors have tried to avoid cryptocurrencies, but this will change one day. Therefore, Wall Street is already preparing to make money on this.
Expert Nikolay Evdokimov also expects the ICO market to grow, he spoke about the mechanics of assessing the investment attractiveness of a startup.
Why Investors Are Piling Into Bitcoin Despite the Risks | WSJ
text: Ivan Malichenko, photo: Chris Li / Unsplash