Crypto Institutional Adoption grows – Do big banks take a dip?


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A senior executive in the crypto division of PricewaterhouseCoopers (PWC) predicts that more institutional players will announce cryptocurrency projects this year.

Henri Arslanian is fintech and crypto lead for PwC China and Hong Kong. He is also president of the FinTech Association of Hong Kong and a teacher of the first fintech university course in Asia.

Arslanian believes that despite regulatory uncertainty and a cryptocurrency bear market, more banks will enter the space in 2019. He notes that 2018 has already seen many enter. "Some of them may decide to launch their own solutions," he said.

Crypto Custody a common entry point

The cryptographic expert offers Fidelity Investments an example of a competitor in the 2018 cryptocurrency market. He launched Fidelity Digital Asset Services LLC to market cryptocurrencies and provide cryptographic services for its institutional customer base in October.

At that time, industry professionals came to support the move. Some commented that overcoming the obstacle to custody for cryptocurrencies and Fidelity's confirmation of the new asset class was a significant step for the industry.

In December, Fidelity revealed that it would add more crypto-assets to its services and also invested alongside the Nasdaq in the Wall Street cryptocurrency purse ErisX.

Arslanian told Bloomberg that:

Others may try to collaborate with some of the other cryptographic companies a bit like Nomura did with Ledger, and others might try to invest in cryptographic companies a little bit. as Goldman did with BitGo and Circle.

Added elsewhere:

This is very positive because it will bring to the industry the level of experience and institutional experience that is something that the cryptography industry needs.

The Japanese holding company Nomura has partnered with Ledger, a hardware wallet maker, in May, once again to launch an institutional quality cryptodeposition service.

Goldman has managed approximately $ 60 billion in a BitGo Crypto-custody encryption service. The investment bank also supports the provider of encryption and over-the-counter services to access the crypto-market.

A former head of electronic trading Goldman Sachs also believes that 2019 will bring better things to the cryptocurrency market. Greg Tusar said:

There are many opportunities to build big businesses and make an impact.

In fact, the CEO of Circle, Jeremy Allaire, made a vague forecast of prices in December – that in three years the bitcoin "will certainly be worth much more than it is today.

Who will take the jump?

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Will a big bank plunge into the encrypted markets in 2019?

Institutional players have so far chosen what could be considered a safer way to enter the cryptocurrency market. Many market participants in 2018 offer cryptocurrency custody or cryptographic back-up solutions. But institutional exchanges such as Switzerland's SIX are becoming more directly in cryptocurrency trading. SIX this year became the first to be approved to offer an exchange based on cryptocurrency negotiated (ETF).

What 2019 needs is a big bank to really start using a cryptocurrency, whether it's a central bank digital currency (CBDC) or an existing currency that they use to make significant transfers.

That said, many banks and financial institutions are laying the groundwork for the future use of cryptocurrency by investigating and adopting the blockchain technology behind cryptography.

Images from Shutterstock


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