Major Banking Corporations have a mounting cryptocurrency problem. In house trading desks and a widening range of clients are encouraging senior management to introduce services around cryptocurrencies. Compliance departments and boards are less keen, but there is a growing feeling that something must be done to avoid being left behind. It’s just not clear what and how.
“The digital asset universe is too large to ignore. We consider crypto digital assets could create a totally new asset class,” said Bank of America in its first ever research note dedicated to crypto.
European banks are more uncertain and, as a result, messaging is mixed and confusing
German Commerzbank at the beginning of the year would not consider speculative investments or to predict it. By this September, the lender had established a digital asset team.
Banks also face a tranche of real challenges to go digital. There technology is old, as usual they don’t see the need to have the latest digital technology. That will have to change. If they don’t they will get left behind. The rise of Companies built around bitcoin and other digital assets are threatening to make Traders, look a bit like Wall Street going to work on electric scooters