Bitcoin is a digital asset that now has a trillion dollar market cap. However, reality shows that it hasn’t had the easiest road to what it is today. But one thing is evident: the sentiment has changed in the most unexpected way. The most traditional banks on wall street are jumping onboard. Actually, one should expect it. Cryptocurrency is great!
In September 2017:
JP Morgan’s CEO, Jamie Dimon disliked Bitcoin. Although Dimon publicly bashed the cryptocurrency, the firm was quietly researching the promise of blockchain and crypto.
Speaking at a conference in New York, the boss of America’s biggest bank said he would fire ‘in a second’ anyone at the investment bank found to be trading in bitcoin. ‘For two reasons: it’s against our rules, and they’re stupid. And both are dangerous.’”
Fast forward to the present
In October 2021:
JP Morgan reported that “Institutional investors appear to be returning to Bitcoin, perhaps seeing it as a better inflation hedge than gold.”
In August 2021:
The most surprising turning point is when they offered Bitcoin funds to private clients. They also offered access to 5 other crypto funds – Grayscale Investments’ Grayscale Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust and Ethereum Classic Trust, and Osprey Bitcoin Trust.
In October 2020:
The bank even created its own digital currency JPM Coin, designed to make instantaneous payments using blockchain technology.
The big picture
Bitcoin is becoming one of the biggest assets in the world. It stands amongst the most valuable like Gold, Google, etc.
These fall under the top 10 most valuable assets in order of market capitalization.
Wall street jumps onboard
Rather than resisting the change, a number of top traditional banks and institutions have embraced crypto with open arms. They are trying to also get their hands on the trillion dollar market.
These are the top 7 banks on in order of investment magnitude:
- Standard Chartered – $380 million
- BNY Mellon – $321 million
- Citibank – $279 million
- UBS – $266 million
- BNP Paribas – $236 million
- Morgan Stanley – $34 million
- JP Morgan – $206 million
The scope for financial institutions is openly widening as US banking regulations will be clear in 2022. The Federal Reserve will make it provide clarity on facilitating crypto trading on behalf of customers. It will make in-depth provisions for customer protection and compliance enforcements with laws and existing regulations.
ZebPay is one brave company that held its ground in its pursuit of cryptocurrency. We are India’s oldest crypto exchange that has survived through the storm of uncertainty. We’ve always embraced crypto and our vision for India and the world, despite all obstacles.