Traditional banks offer digital asset custody amid compliance legislation
Compliance and regulations become more important than ever before for banks and traditional institutions that offer support for digital assets. More and more traditional banks have started announcing support for digital assets as the price of Bitcoin (BTC) continues to make headlines for record-breaking all-time highs. Even major banks like JPMorgan Chase, which previously frowned upon Bitcoin, have taken a newfound interest in the cryptocurrency. Contrary to what Goldman Sachs stated recently, JPMorgan’s strategists have noted that “the price of gold would suffer from a structural flow....
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Crypto adoption in traditional legacy systems is moving fast, but a lack of technological infrastructure limits compliance and safe storage. The adoption of digital assets in traditional legacy systems is moving fast. In the middle of the year, the digital asset custody industry saw welcome developments when the Office of the Comptroller of the Currency officially announced that all nationally chartered banks in the United States can provide custody services for cryptocurrencies.The move, while positive for the ecosystem, is yet to be accompanied by a rigorous assessment of its....
Traditional financial institutions must work hand-in-hand with crypto custodians, sub-custodians and service providers moving forward. Grayscale Investments’ latest report “Reimagining the Future of Finance” defines the digital economy as “the intersection of technology and finance that’s increasingly defined by digital spaces, experiences, and transactions.” With this in mind, it shouldn’t come as a surprise that many financial institutions have begun to offer services that allow clients access to Bitcoin (BTC) and other digital assets. Last year, in particular, saw an influx of financial....
The crypto custody business blossomed in 2019, spearheaded by fintech firms, but now its center of gravity might be shifting. Custody services aren’t the most compelling corner of the crypto ecosystem, but 21st-century solutions for storing and safekeeping digital assets are critical if cryptocurrencies are to achieve widespread adoption. For that reason, Cowen Inc.’s recent announcement that the 103-year old United States investment bank wants to hold crypto on behalf of asset managers and hedge funds is noteworthy, especially when coupled with similar statements from traditional bank....
Delegate Christopher T. Head introduced the bill (House Bill No. 263) back in January 2022, seeking an amendment to allow eligible banks to offer crypto custody services. The United States Senate unanimously approved a bill amendment request that now allows traditional banks operating in the Commonwealth of Virginia to provide virtual currency custody services. Delegate Christopher T. Head introduced the bill (House Bill No. 263) back in January 2022, seeking an amendment to allow eligible banks to offer crypto custody services:“A bank may provide its customers with virtual currency....
The bank will store private keys and provide bookkeeping services equivalent to those offered to fund managers in traditional assets. BNY Mellon has launched a digital custody platform to safeguards select clients' Ether and Bitcoin holdings on Oct. 11, making the America's oldest bank the first large bank in the country to offer custody of digital assets and traditional investments on the same platform. According to a statement, the bank will store private keys to access the funds and provide the same bookkeeping services offered to fund managers in other assets, such as stocks and bonds.....