Category: Cryptocurrency News

submitted by /u/dkkc19 [link] [comments]

submitted by /u/stratguy56 [link] [comments]

Wells Fargo had announced earlier in the year that they planned to offer cryptocurrency investments to clients. Something that was referred to as a “professionally managed” cryptocurrency investment. Now the bank has announced that it will begin offering cryptocurrency exposure to its high net worth clients. The Wells Fargo Investment Institute had been working on a way for it to be able to best offer its clients an option to invest in cryptocurrency. Following a re-evaluation on the bank’s stance on crypto. “We think the cryptocurrency space has just kind of hit an evolution and maturation of its development that allows it now to be a viable investable asset,” Darrell Cronk told Insider back in May. Related Reading | Bitcoin To Surpass $120,000 In A Year, Says Pantera CEO Cronk, who is the President of Wells Fargo, alluded to the market size of the crypto market making it a good alternative investment for clients. The solution had been in the works for months as the Wells Fargo Investment Institute, which is the investment-research division of Wells Fargo Wealth and Investment Management, devised a way to provide this service to investors. Getting Clients Exposed To Cryptocurrency Wells Fargo will only be offering crypto exposure to some clients as part of its wealth management. These clients consist of high-net-worth individuals who want to get more exposure to the market without having to buy into cryptocurrencies themselves. Total crypto market cap down following weekend rallying | Source: Crypto Total Market Cap on TradingView.com Cronk revealed that this comes with “quite a bit of interest” from their clients. And Cronk’s strategy team has published the first-ever research report on cryptocurrencies by the institute. “There’s a lot of education and informational work that has to be done. It is a complex topic, and while investors have interest, it is important that they understand it for what it is.” – Darrell Cronk, President, Wells Fargo Banks Getting Into Cryptocurrencies Wells Fargo is not the first bank to provide cryptocurrency exposure to its clients. Banks have reported that there continues to be increasing demand from clients for a way for them to get involved in digital assets. In fact, Wells Fargo comes behind a couple of big banks that have provided crypto investment options for their clients. This survey carried out by Goldman Sachs revealed that 50% of the ultra-wealthy want increasing exposure to cryptocurrencies. To which Goldman Sachs has responded by offering clients the option to trade Bitcoin and Ether Options and Futures. Hopefully, other digital assets to be added to the mix. Related Reading | How Much Is Your Love Worth? Polish Influencer Sells “Love” As NFT Big bank JP Morgan also ramped up investment in companies with Bitcoin exposure, banking on increasing demand for cryptocurrencies. While this deal between NCR and NYDIG will see customers be able to buy bitcoin across 650 banks. As consumers demand more ways to get into the market, it is only natural to expect an influx of these types of products to help clients get more exposure to cryptocurrencies. Featured image from Investor Junkie, chart from TradingView.com

submitted by /u/Jimbotastic777 [link] [comments]

submitted by /u/slavik0329 [link] [comments]

A recent report from the ABA (American Bankers Association) suggests that banks partner with cryptocurrency firms due to the growing client interest and profit in the sector. This 20-pages report provides a detailed analysis of the crypto, including a glossary. It also maps cryptocurrency activities to the bank services and products. The Banker’s association also suggests crypto use cases for the banking sector with regulatory issues and revenue models to the use case. Related Reading | Vitalik Buterin Urges Ethereum To Grow Beyond DApps The report has four distinct categories of crypto-assets: CBDC (Central Bank Digital Currency), Cryptocurrencies, Non-Fungible Tokens, and Stablecoins. There was also a mention of Defi (Decentralized Finance). Cryptocurrency Use Cases and Regulations According to the report, some of the use cases of crypto in the banking sector include; Store of value- Banks can earn revenue by facilitating crypto buying & selling on their platforms. Custody/Wallet Providers- Banks can offer digital wallets and charge service fees for them. Interest Bearing Accounts –Banks can earn a fee on interest through facilitating lending operations to investors. Lending –Banks can offer cryptocurrency loans to clients and charge a fee for it Payments- Banks can charge fees like what happens to credit or debit cards Broker-dealer-Banks can collect spread from crypto assets transaction and earn revenue Exchange Trading- Banks can raise revenue from transaction fees, deposit fees, listing charges, etc. Network Utility- Banks can offer utility tokens and earn revenue for creating & selling them. Insurance- Banks can raise insurance premiums by spreading risks to diverse investors. Asset Management-Banks can charge a fee on the crypto portfolio management for clients. Another aspect of the report is surrounding crypto regulations. It focused on requirements around the sale or offering of crypto, tax reporting, and money transmission. According to the report, the SEC regulated the sale of cryptocurrency. The crypto market seems to be marking a 4% increase on the daily chart | Source: Crypto Total Market Cap on TradingView.com For every money transmission, the FinCEN regulates it and requires operators to register for the MSB and MTL, Money Services Business, and Money Transmitter Licenses. But tax reporting lies on the table of the IRS. However, it also pointed out that there is no clarity on crypto regulations yet. According to the report, such unclear regulations can create disparate or unclear requirements. There was also a mention of DeFi, gamification, and many environmental issues as the risks of the cryptocurrency industry. What Can Be The Way Forward? According to the report, banks are very much interested in the crypto industry. They aim to identify the opportunities to offer exposure to these assets for their clients. Presently, the growing client interest in crypto pushes the banks to research ways to provide cryptocurrency products. There was also a reference to the NYDIG survey that revealed that 80% of BTC would transfer their asset to banks. Related Reading | Ethereum Founder Vitalik Buterin Spotted With Hollywood Celebrities As the report finds, the way forward is that banks should partner with cryptocurrency companies and accept their customers as clients. On the other hand, banks will access payments systems to onboard fiat deposits and offload them. The report also went further to suggest partnerships that may work between the two sectors. Featured image from Pixabay, chart from TradingView.com

submitted by /u/spankthawank [link] [comments]

submitted by /u/AnthonyPerfetto [link] [comments]