Analytics Insight charts the top banks interested in using cryptocurrency with blockchain tech.
The extensive use of cryptocurrency in the financial world has instigated banks and other financial institutions to adapt to the cryptocurrency market. Banks have initiated to embrace the functionalities of a cryptocurrency and are interested to integrate blockchain technology into their existing financial system. The decision is taken to attract potential investors who usually deal with other parties through millions of dollars of assets and money. These institutions have also started launching smart tokens and payments through cryptocurrency to increase funding in their digital wallets. Multiple reputed banks have started using cryptocurrency in these recent years and some are also making plans to get involved with blockchain technology. Analytics Insight provides a list of top banks interested in using cryptocurrency with blockchain technology.
Top Banks Interested in Using Cryptocurrency with Blockchain
JP Morgan is one of the reputed banks in the world, that started exchanging cryptocurrency over a blockchain between two parties in 2019. It was successful in a trial of a prototype cryptocurrency known as JPM coin for transferring international B2B payments. One JPM coin represents one US dollar and customers can send money to another bank over blockchain and instantly redeem the equivalent amount in the US dollar. JP Morgan has a plan to extend the JPM coin to other currencies over a period of time.
Citi Bank is interested in making a move in the trending cryptocurrency market to offer cryptocurrency services to its clients. The official announcement will be done after having confidence in its ability to build a cryptocurrency platform for high-end clients as well as a surge in client interest in cryptocurrency. The blockchain ecosystem is new to accommodate multiple players under one flag.
Morgan Stanley has recently announced that it will launch access to three funds that allow ownership of Bitcoin to its wealthiest clients who have a minimum of US$2 million assets in the firm. It is the first-ever big US bank to offer Bitcoin funds to the wealthiest clients. Morgan Stanley brought the first big dedicated investment in the cryptocurrency market by co-leading the US$48 million investment with a digital securities platform, Securitize.
Signature Bank, is another popular bank based in the US that launched blockchain-based payment in 2018 after approval from the New York State regulators. The modernized cryptocurrency system has allowed customers to send dollar payments in real-time without any transaction fee. But one of the conditions to secure payments with blockchain is that these corporate customers are required to possess at least US$250,000 in their accounts. The cryptocurrency payment network of Signature Bank utilized a stablecoin pegged to a dollar running on the Ethereum blockchain.
Singapore’s DBS Bank has issued its first-ever security token offerings with blockchain for potential investors in 2021. The security token offerings are worth US15 million and digital bonds worth US$11 million. The asset tokenization of the DBS Digital Exchange or DDEx leverages blockchain technology for dealing with the most valuable assets. The bank has also started a crypto-trust that offers investment management services with a lot of different cryptocurrencies. There are digital assets worth of maximum US$60 million in the bank’s custody.
Silvergate Capital is one of the first banks to onboard 76 cryptocurrency exchanges and more than 600 institutional investors making it attractive to potential customers. This bank is popular for launching a digital payments platform known as the Silvergate Exchange Network (SEN). SEN helps to clear transactions in US dollars instantly throughout the year. It is also focused on building other products related to cryptocurrency through blockchain technology for utmost security. It has also launched a Bitcoin custody solution to drive the growth of Silvergate Capital in the global market.
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