Cryptocurrencies, especially Bitcoin, continue to receive a huge amount of investment from global finance companies. Despite the volatile price action, and potential new crypto regulations, Bitcoin remains a popular investment with institutions.
Some US leading financial firms are choosing to stay on the margin of the market while many others are proceeding with developing exposure to crypto assets.
Significantly, one of the US biggest banks, JPMorgan, is currently approaching the possibility of supporting its clients’ transactions in cryptocurrencies.
This may be a sign that the bank’s clients are looking for exposure to cryptocurrencies in increasing amounts.
Key Announcements From US Financial Firms
State Street, a US financial giant, announced a new division for digital finance.
Following this, the Interactive Brokers announced its plans to build up an online trading platform for cryptocurrencies by the end of the summer. Interactive Brokers is a leading online trading firm.
Remarkably, ForUsAll, a well-established platform which manages retirement accounts for small size businesses, also announced an agreement with Coinbase which will allow its clients to use up to 5% of their balances for crypto investment.
Bank of America and Citigroup also said in a late May congressional meeting that both are planning to add cryptocurrencies to their investment options in the near future.
Tougher Regulations May be Coming
As there are no official rules and legislation for the US crypto industry, many investors still see risks associated with cryptos. Some also see tokens as a tool of the Black market, as Bitcoin is commonly used in ransomware attacks.
Cryptocurrencies have seen remarkable volatility over the past year as well.
Bitcoin rose from near $30,000 at the beginning of 2021 to $63,000 in April before dropping dramatically to $34,000 in the beginning of June.
As a result, many financial companies are worried about buying into such a volatile market, although this fear doesn’t appear to apply to everyone in the US markets.
The Basel Committee which is responsible for coordinating regulations with central banks will release its proposal for new rules, which may require the banks to put restrictions on crypto investments.