Are private banks ready to accept cryptocurrency investments?

Are private banks ready to accept cryptocurrency investments?

Whether or not private banks see the value of cryptocurrencies, their customers do see it.

The Devere Group study found that by 2022, 68% of high net worth individuals (hnwis) will invest in cryptocurrencies.

Does this mean that private banks will soon have no choice but to use cryptocurrencies to meet customer expectations?

Private bank's view of cryptocurrency

According to a survey by Fidelity Investments, 22% of institutional investors have already made a certain exposure to digital assets, and 47% believe that these assets have a place in their portfolio.

Ahmed Ismail, co-founder of Hayvn, a cryptocurrency exchange for institutional markets, said: "As regulatory and compliance requirements increase, investor confidence in digital assets occurs. A huge shift."

“Institutional investors we have talked to are interested in asset classes, but they may be reluctant to get involved because of bad practices and perceived risks (such as fraudulent transactions and opaque fees).”

Iqbal Gandham, UK managing director of Etoro, added: "This positive sentiment reflects our daily conversations with high net worth individuals and institutions.

“Until recently, crypto assets have provoked the curiosity of institutional investors – they have now noticed.

“It is clear that high net worth individuals have always had demand, and we are increasingly seeing large institutions such as pension funds and endowments, taking asset classes seriously.”

What will cryptocurrencies worry private banks?

Cryptographic currencies are still affected by security and stability issues, and private banks and other institutions see it as an obstacle.

Last time, Bince, a cryptocurrency exchange, was hacked, causing $410 million in bitcoin losses.

Commentators admit that such incidents are worrying, but they don't think they should keep private banks away from cryptocurrencies.

R_my Jacobson, CEO of Bunker Capital Blockchain Consulting, said: "I want to know, the timing of hacking, coupled with the recent shackles and the fiasco of Bitfinex, will bring uncertainty to institutional investors and weaken the final It seems that the level of trust is getting better."

"However, I am still optimistic about Bitcoin."

“Binance hackers are no different from any other market movement we have seen in the past few months and are already active.”

"The most interesting part of the recent surge in the market value of the bitcoin and encryption markets is that despite news about Tether, Bitfinex and Binance, the overall price is still rising," said Vabihav Kadikar, CEO of Closecross Derivatives Trading Platform.

“This shows that the market is becoming more and more mature, and it may be the guarantee that more institutional funds will flow into the market.”

What else does cryptocurrency need?

Ahmed Ismail said: "The missing link is custody."

“In order for private banks to feel comfortable entering the asset class, you need to provide a guarantee of the traditional capital market structure. Institutional investors enter the field faster than before, thanks to the compliant, regulated actors that investors trust. Joined."

Hefren is trying to be such a regulated role to provide this. Ismail and his co-founder Chris Flinos emphasized the importance of institutional money flowing into cryptocurrencies to help quell the notorious price volatility.

Flinnors added: "The asset class is no longer dominated by opportunists seeking high-risk and high-yield, and the image of 'Western Wildness' is outdated."

“With the interest of more and more mature institutional investors, violent price volatility will be resolved, bringing more confidence to the asset class.

“Yes, this is a process, but it starts with guardianship, safety and supervision.”

Which private banks already offer cryptocurrency?

The most compelling entrant in the world of cryptocurrencies can be said to be Julius Baer, ​​which in February 2019 announced a partnership with FinTech's Seba Crypto to provide storage, trading and investment solutions for cryptographic assets.

Next up are Swiss private banks Falcon and Vontobel, which launched a transfer and hosting solution in January.

Transfer from: Chain to Finance

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Quote analysis: Changyin has emerged, short power is beyond imagination

People like to look for reasons after the fall. In fact, there is no obvious negative in the market. It is just that ...

Blockchain

The conflict is intensifying, gold or challenge history is new, is there a drama in BTC?

Yesterday, many central banks cut the benchmark interest rate to cope with the downward trend of the economy. Yesterd...

Blockchain

Bakkt: Not just a cryptocurrency exchange, hosting is the core

Foreword: Bakkt will launch a Bitcoin futures contract on September 23. In the eyes of everyone, Bakkt is a cryptocur...

Blockchain

SEC Chairman: Bitcoin will not board the traditional mainstream exchanges before strengthening supervision

According to CNBC, US Securities and Exchange Commission Chairman Jay Clayton said on Thursday that Bitcoin will not ...

Blockchain

Cobra Cøbra roared "Call a single V": said bitcoin must have risen mentally

Note: In the cryptocurrency community, Cøbra, known as the Cobra, has always been a controversial figure. He is ...

Blockchain

Is it a good idea to recapture stolen funds in the reorganized block?

Foreword: After two days about whether hackers have stolen money, whether the funds should be reclaimed through reorg...