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Traditional financial institutions are taking Crypto trading and launching or preparing to initiate crypto services like crypto exchanges
- After opposing and criticizing cryptocurrencies and crypto trading, Banking institutions are now stepping into Digital Assets Race
- Commonwealth Bank and many other prominent banks worldwide are taking crypto assets serious
- At the time crypto exchanges and crypto services were done by decentralized crypto exchanges
The days of criticism and banning demands of cryptocurrencies seem to end soon. It is because the loudest voices against crypto trading and digital assets were of Banking Institutions, which are now making their ways to accept crypto exchanges and crypto services to be available on banking platforms, how the tables had turned now like those who were initially not accepting crypto trading to be authentic and worth existing and tried so hard to make it entirely gone from financial systems. Those who were trying to push regulators to make Cryptocurrency out of the system are now lobbying regulators to have ways for Banks to do Crypto Trading and Crypto Exchanges.
In recent years cryptocurrency users have increased dramatically, and they were using decentralized exchanges or platforms, other than the banks, to do their crypto trading. Banking Industries have now got the worth of Cryptocurrencies and Digital Assets. Although Crypto trading is a whole new world and it’s not the competency of banks. Still, they want to indulge in it and make their ways to earn profit. They plan to take in almost every field related to cryptocurrencies, providing as many possible crypto services as a crypto exchange to facilitating crypto trading or managing crypto assets.
These Banking Institutions would try different approaches to do so. They are offering investments in cryptocurrencies to wealthy clients and customers. Some plan to arrange a dedicated platform like crypto exchanges for crypto trading. Even some are going to the top limits by launching their crypto-asset-like digital currency. All these happenings might seem unusual and unexpected, but they are happening around.
Australia’s biggest bank, Commonwealth Bank (CBA), will start crypto services that allow users to buy, sell and keep hold of their crypto assets. Commonwealth Bank will be the first to provide a crypto trading facility. For this plan to roll out, it has even partnered up with exchanges and Blockchain. The New Pilot Program of Commonwealth Bank is now providing its customers with these services after its partnership with a crypto exchange named Gemini and Chainalysis, which is a Blockchain analytic Firm.
Many private bank groups in Germany have been observed to try new trading networks so that their clients and users can trade their digital assets like Bitcoin and Ethereum, etc., on using Bank. Swiss Bank authorities are also providing services of digital accounts so that banks can manage digital assets.
It’s a common belief that America might have most crypto users. Still, American Banks remain way behind in understanding the current need and too slow in adapting. Federal Deposit Insurance Corporations (FDIC), a top banking regulator in the USA, are now finding the solution for holding the crypto assets by banks. One of the Prominent Banks in America, JP Morgan, has even gone to its limits. In 2019, Onyx’s unit introduced its own digital currency, JPMcurrency JPM Coin, which was based on Quorum. Although it was not something like Blockchain, it’s an internal network that works like Blockchain. But it never rolled out for use because of many issues and objections and was only available for inter-bank transactions.
First, the Banks and Authorities denied crypto’s acceptance and questioned its very existence. It didn’t work; later, they came up with the idea of regulating it and keeping the authority of cryptocurrencies; banks even didn’t get control over it. Finally, Cryptocurrency is now in the state to give tough competition to traditional Financial Institutions and Banking Systems. Obviously, its Financial Institution’s failure resulted in the Great Recession of 2008, which further resulted in the idea of Decentralization, and the following was the birth of the first decentralized Cryptocurrency, the Bitcoin. The whole story began from there, and it had captured some three million users soon after its launch. In just seven years, this number of users reached 75 million in 2015. That would be the wake-up call for the institutions that now the world is moving towards the Digital Assets, and now it’s their turn if they don’t want to get left out. There are approximately 220 million active users of Crypto trading or having crypto assets; this is already a considerable base and enough to understand and accept the acceptance and existence of cryptocurrencies worldwide.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
