After spending years on the sidelines, major banks have begun to dive into the world of digital assets.
The Commonwealth Bank (CBA), Australia’s largest bank, says it will be the first in the country to allow clients to buy, sell and hold crypto assets.
A beta program that offers live encryption to customers through the bank’s core app is about to roll out. It is part of a new partnership with crypto exchange Gemini and blockchain analytics firm Chainalysis.
Meanwhile, a group of savings banks in Germany is said to be testing a trading network that would allow 50 million customers to buy and sell bitcoin (BTC), ethereum (ETH) and other crypto assets.
In addition, the Swiss subsidiary of BBVA is now offering digital accounts to its clients to allow them to trade BTC and ETH.
In the US, financial giants Bank of New York Mellon and Fidelity provide crypto services to large institutional clients.
Major US banks remain the slowest to bring crypto assets to retail clients – but that may also start to change this year.
The Federal Deposit Insurance Corporation (FDIC), a major US regulator, is exploring how banks can hold crypto assets, according to a recent report from Reuters.
FDIC chief Yelena McWilliams says a group of regulators is working to develop a set of guidelines that would allow US banks to back crypto assets.
“I think we need to let banks into this space, with appropriate risk management and mitigation,” she said in an interview on the sidelines of a fintech conference.
If we don’t bring this activity inside the banks, it will be developed outside the banks… Federal regulators will not be able to regulate it.”
According to McWilliams, the FDIC is working alongside the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to develop a clear and coordinated set of rules that will allow US banks to enter the realm of digital assets.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investments in bitcoin, cryptocurrencies, or digital assets. Please be aware that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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