Wall Street and Crypto: a brief overview


Despite market correction, institutions are interested

Despite the collapse of the market in 2018, Wall Street institutions still show interest in offering products, services and encrypted solutions aimed at retail customers alike and business. As highlighted by the latest issue of Diar, a fintech-focused publication that provides in-depth analysis of the cryptocurrency and blockchain markets, leading US banks have openly shown interest in cryptographic resources. The Diar team wrote:

Excluding Wells Fargo, the 5 largest US banks have indicated their interest in serving customers' requests for trading Bitcoin and other cryptocurrencies.

JP Morgan

Despite CEO and Chairman Jamie Dimon's hot comments against cryptocurrencies, as reported by Ethereum World News in May, the company is still reportedly "examining" Bitcoin, blockchain technology and cryptographic assets in general. Although it has not been recently specified what exactly the company is working on, the largest bank in America has apparently started working on nameless blockchain projects, also considering the creation of a crypt division of resources.

Bank of America

from Ethereum World News a few weeks ago, the Bank of America, recently filed its second patent concerning the support of cryptocurrency custodians, with this patent that alludes to a system that will allow the 39; company to provide storage for large scale businesses' digital businesses. While this does not mean that the BoA will soon open a custody service, many hope it's somewhere deep down.


On 9 September, insiders familiar with the issue revealed to Business Insider that Citigroup, a multinational financial services provider, had created an encrypted product, dubbed "Digital Asset Receipt" or DAR. This product seems to resemble an American deposit receipt, a less known but historic investment vehicle that allows investors to receive exposure to foreign securities while remaining on US soil.

In the case of cryptographic / digital assets, the DAR allows potential investors to receive full exposure to the often drastic price fluctuations of Bitcoin, without having to worry about maintaining digital assets. Those familiar with the issue have noted that although the idea has been developed, it is still unclear when this new product could hit the limelight.

Goldman Sachs

Goldman Sachs is one of the most interesting companies when it comes to his involvement in the encrypted patrimonial space. Firstly, Goldman Sachs revealed that it would make the BTC futures markets for its customers in May. A few months later, a report by one of the company's many subsidiaries found that "Bitcoin is set to decline further, as it can not be used as a" medium of exchange, unit of measure or reserve of value ". a few days after the controversial report hit the mainstream, Bloomberg hinted that Goldman was working on a custody solution, for those familiar with the issue.

Then, at the beginning of September, insiders noticed that Goldman had put his plans to establish a full encryption desk on the backburner, which was suggested as early as October 2017. But then new, this revelation was opposed, with the CFO of the bank that defined the rumors of trading "false news".

Aside from the internal confusion, it seems that Goldman still seems ready to make a major incursion into the cryptosphere by providing solutions and services that will benefit its customers.

Morgan Stanley

As discussed by Ethereum World News last time k, Morgan Stanley, one of the largest banks in the world, reported having started working on bitcoin swaps, a form of derivatives financial. A source close to the bank found that the infrastructure for digital asset swap is present, but the bank is waiting for established institutions to show sufficient interest and demand. Furthermore, it is said that the company is going through an internal approval process to verify that the above swaps are ready to hit the streets, if possible Wall Street.

Like the DAR of Citigroup, investors who participate in swaps will not receive the & # 39; physical & # 39; Bitcoin, as the vehicle will be tied to the futures market, instead of the actual cryptographic resources internal to the portfolio. As such, this new product will allow interested investors to experience the full performance of Bitcoin, both long and short, while not holding the BTCs themselves.

What are the perspectives? You can ask.

Well, most of these products have been mentioned and mentioned, to be honest, so the next step is for these Wall Street giants to really launch the products that many have been waiting for. But since many of these companies operate behind closed doors, for now, we cryptic investors will have to sit in our hands and hope for the best.

  Photo of Rick Tap on Unsplash 
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