This could bring a new boom to the cryptocurrency market.
The cryptocurrency market is rapidly attracting more and more investors and the American Bankers Association has decided to partner with cryptocurrency companies to serve the interests of its clients. The ABA sent a 20-page report that gives detailed crypto analysis, including a glossary, and describes cryptocurrency activities and use cases for the banking industry as well as regulatory issues and revenue models. .
The report divides crypto assets into four categories, CBDC, Cryptocurrency, NFT, and Stablecoins. The report indicates the use cases of cryptocurrency for banking sectors as follows:
- Store of value – Banks can generate income by enabling the buying and selling of crypto on their platforms.
- Wallet providers – Banks may offer crypto wallets with a service charge.
- Interest Accounts – Banks may charge a commission on interest by allowing lending transactions to investors.
- Loans – Banks may offer loans in the form of cryptocurrency loans for a fee.
- Payments – Banks may charge crypto fees similar to debit and credit cards.
- Brokerage – Banks can collect spreads from cryptocurrency transactions and generate income.
- Exchange trading – Banks can earn income from transaction fees, deposit fees, listing fees, etc.
- Utility Network – Banks can offer utility tokens and earn income by selling them.
- Asset management – Banks may offer crypto portfolio management services and charge a fee.
The last update
Wells Fargo is preparing to accept cryptocurrency investments for clients. The bank has announced that it will offer crypto exposure to its high net worth clients. After a reassessment of the bank’s verdict on cryptocurrency, Wells Fargo believes that the cryptocurrency space has seen an evolution and maturation of its developments that have now made it a viable investment asset.
Wells Fargo is not the first bank to do so. Goldman Sachs has revealed that 50% of its ultra-rich clients want increasing exposure to cryptocurrencies. Goldman Sachs is now preparing to allow trading in Bitcoin and Ether options and futures.
JP Morgan has also stepped up its investments in companies exposed to Bitcoin due to the growing demand for cryptocurrencies. At this rate, more banks are expected to meet the needs of cryptocurrencies and provide their customers with an influx of products for more exposure.
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