Eventually, credit institutions are entering the crypto market. Awesome news! They are no longer afraid of the extreme volatility of digital assets. According to bank executives, they are gradually stepping into the crypto industry but remain wary of violating existing regulations that could quickly change. Financial institution representatives have stated they are ready to join crypto initiatives, but only if a major company takes the first step by testing new directions in the industry.
“The most promising sector of the crypto market is the business of custodianship and digital asset management. However, it comes with low margins and potentially high risks. Most banks are willing to enter this space through partnerships with already established crypto companies,” bank representatives noted.
Despite positive signals from the White House and regulators, credit institutions seek clear guidance from the federal government. Banks are reluctant to take bold initiatives in the crypto industry. For now, they are cautiously exploring the crypto space and launching small-scale pilot programs.
Matthew Biben, co-head of the global financial services group at King & Spalding, stated that the situation has improved significantly. However, banks looking to enter the crypto market “still fear regulatory actions and are uncertain about fully complying with existing rules.”
Earlier, The Wall Street Journal reported that the largest US banks, including JPMorgan, Citigroup, and Bank of America (BofA), are in talks to form a consortium aimed at launching a unified stablecoin.
