Big Banks Dive Into Crypto: What This Means for Us

by Jun 1, 2023Articles

Articles

Big names in banking are jumping on the crypto train.

As the FT reports, Standard Chartered, Nomura, and Charles Schwab are gearing up to play in the same sandbox as Bitcoin and Ethereum.

Standard Chartered want to focus on establishing a cryptocurrency brokerage and exchange platform in Britain and Europe for institutional clients.

This is BIG news and signals the continued snowballing of an exciting trend.

Only last month BlackRock, the world’s largest asset manager (with around $10 trillion of assets under management) said that it will give its clients access to crypto markets.

After years of belly aching and supermarket aisle tantrums the major financial institutions know crypto’s here to stay.

Why this is such a big deal

Fund managers have been clambering for a slice of these markets for years but they needed a safe on ramp.

This will provide that.

The word ‘safe’ here is key.

Institutional investors need guard rails in place to invest in crypto at scale.

This is in part down to regulation but also to bridge the fear / knowledge gap.

Picture it like this: You’re a wealthy investor visiting a city called ‘Crypto’ for the first time. It’s daunting, people have told you horror stories.

But then you bump into an old friend who knows the city well and offers to show you around.

That’s what these established financial institutions can offer investors.

They’re well known. They will bring their ‘expertise’ and cellophane wrapped credibility to what many see as the ‘scary’ world of cryptocurrencies.

The entry of traditional banks into the crypto realm provides a merging of two different worlds – one old and ‘trusted’ (for better or worse), the other representing the future.

By separating trading and custodian services, traditional financial institutions can get that added security and reassurance for investors.

This in turn could pay the way for more to enter the market…

This is incredible news for us as investors

That flood of institutional investment could be headed our way.

Dragging these old financial juggernauts into the crypto space will make the existing crypto market size look tiny by comparison.

This could be the dawn of a new era in these markets.

With big, established players in the market, competition will increase. And more accessibility, competition and demand drives higher prices.

If you are already invested, great. You are in the right space.

If you want to know how to invest and where to invest, we’ve got you covered:

Here’s how to get yourself setup in just a few days (a step-by-step guide)

Don’t miss the boat on this.

The Key Takeaway

We’ve been talking about the outsized effect institutional investors could have on crypto for a long time. It’s just a matter of time.

We’re seeing a perfect storm of (what we believe is) a vastly undervalued crypto market and big ‘pro crypto’ moves by the banking industry.

If you’ve been sitting on the sidelines, get yourself up to speed here before it’s too late.

These are volatile markets and all investing is risky but these technologies look set to spearhead an entirely new way of transacting information. If a fraction of this potential is realised, the scope for exponential gains here is enormous.

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