Elliptic Executive: Global Banks Wants to Offer Crypto Services
Big-money players are getting restless as Bitcoin (BTC) achieves new milestones daily. Financial institutions have felt left out of the crypto revolution and are bleeding customers. However, they are now ready to explore the sector to remain in business.
US Banks Are Making Crypto Inquiries
Elliptic co-founder Tom Robinson believes the tides are changing for commercial banks. Robinson says that legacy banking institutions are becoming increasingly interested in offering crypto services to their customers, The Telegraph reports.
The Elliptic boss attested to the rise in demand from global banking institutions. The bank’s inquiries border more on how they can offer crypto services without dealing with money laundering issues.
Elliptic is a UK-based blockchain forensics analysis and crypto compliance firm that works with crypto exchanges, banks, and regulators. The crypto compliance firm is also a noted service provider for the Federal Bureau of Investigation (FBI).
The top executive at the British firm said the rise in demand comes mainly from the U.S, noting that British banks were still restrained.
Banking institutions have been reluctant to move into the crypto space due to uncertain government regulations in the industry. But, Mrs. Prendergast Millard feels the narrative is about to change as more government agencies plan to regulate the sector.
Millard, who manages risk and compliance at Guidepost Solutions, feels it’s only natural for banks to dabble into crypto if they hope to retain their customers. Her argument lies on the dwindling savings rates globally, with some UK banks offering as little as 0.12% annually.
Global companies with a futuristic business model have keyed into the cryptocurrency space. They are making necessary preparations to stake a claim in the rapidly evolving ecosystem as the bulls return.
A recent announcement saw America’s oldest custodian bank, Bank of New York (BNY) Mellon making preparations to provide custodial crypto services for their asset-management clientele. BNY Mellon plans to hold, transfer and issue cryptocurrencies on behalf of its clients. The $41 trillion asset manager would float a digital assets platform this year.
Deutsche Bank has also shown interest, with the German investment house saying cryptocurrencies will play a vital role in its future financial services. Payment giants Mastercard and Visa publicly backed crypto assets in the past. Both firms would start by integrating a few cryptocurrencies into their payment platform.
Crypto Still ‘Speculative’ Assets At Best
Following Tesla’s major investment in BTC and the subsequent bullish rally in the market, Bitcoin broke through the $50K mark on Tuesday. With so much optimism and institutional money flowing into the sector, some remain skeptical.
Dr. Thomas Colon, an associate professor at the University College Dublin, pointed out that BTC was still a speculative asset and not a hedge against inflation like gold.
“I would be most nervous about investing unless I had a long investment horizon and a high tolerance for risk,” he further explained.
Although the United States Securities and Exchange Commission (SEC) has been reserved about its stand on cryptocurrencies, the administration of its new Chairman Gary Gensler is expected to bring clarity on the agency’s position.