It seems that the need to meet the growing desire of institutions for crypto is increasingly important among standard financial institutions. The US bank has just announced that it is unveiling a new crypto custody service that fund managers can use to store both private keys and digital assets.
U.S. bank potentially sees crypto as important
The idea of banks and the crypto mix is unusual, mainly because they are both so different. On the one hand, banks seek to control their financial future. They decide who can access the tools and services. They look at a person’s history, such as their work history and debt-to-income ratio, and decide who can get bank accounts, credit cards, and other items needed to make their life a little more livable.
Crypto, by comparison, is quite the opposite. The goal of cryptocurrency is to make people have more of a say in how their money rolls. Crypto doesn’t care about your past. It doesn’t matter if you’ve made some bad financial decisions or have some imperfections in your past. As long as you have access to the internet, you can build a digital wallet and start trading without worrying about interference from a central figure.
So, as US Bank – America’s fifth largest bank – prepares to provide crypto custody to its biggest customers, it becomes clear that standard money institutions are starting to see crypto in a whole new light. They arguably see the growing asset space as something that cannot be ignored. Obviously, more and more customers are looking to cash in, so they need to get involved quickly or they run the risk of losing business and having unhappy customers.
Merge the two industries together?
Investment managers can store private keys with US Bank, which they can then use to access digital assets like bitcoin, bitcoin cash, and Litecoin. In an interview, Gunjan Kedia – vice president of the bank’s wealth management and investment services division – said:
Our clients take the potential of cryptocurrency as a diverse asset class very seriously. I don’t think there is a single asset manager who isn’t thinking about it right now… What we were hearing everywhere was that even though every currency might not survive – there wouldn’t be. – being no room for thousands of coins – there is something about the potential of this asset class and the underlying technology that it would be prudent for us to support.
This move is likely to bring cryptocurrency closer to legitimacy. US Bank was founded in 1863 at the height of the Civil War. He is currently one of the top ten players in the custody game and currently manages more than $ 8 trillion in assets for clients across the country according to data from the Federal Deposit Insurance Corp (FDIC).