Citi Bank Hints Offering Crypto Services to its Customers
Speaking to the Financial Times, Tuchman revealed that Citi is seriously considering launching crypto trading, financing, and custody services. Tuchman mentioned that there are different options from their perspective, and they are considering where they can best serve clients. He added that this would not be a prop-trading effort, referring to trades a bank makes with its own money.
The move will render it the latest Wall Street bank to do so. Earlier, Morgan Stanley announced that it would allow its affluent client access to Bitcoin funds in March. Similarly, Goldman Sachs will also be offering Bitcoin derivatives to large investors. N.Y Mellon is also allowing storage and management of Bitcoin.
However, Tuchman said that Citi was in no rush to make any concrete decisions referencing the fact that he has no FOMO because he believes that crypto is here to stay.
Citi’s View of Crypto
The 208-year-old bank with its New York headquarters already has many reports on its crypto market forecasts. A 108-page study entitled “Bitcoin: The Tipping Point,” published by Citi in March of this year. Citi reported in the survey that Bitcoin could become international trade’s currency of choice.
Citi highlighted the global reach of Bitcoin, the borderless design, and the absence of exposure to foreign currency to support its view. However, Citi argued that its credibility is the most significant factor in the future growth of Bitcoin to a global currency.
Bitcoin appears to be becoming the de facto ‘North Star’ of the digital asset space, with its trajectory seen as a compass for the broader ecosystem’s growth, the report said.
The study raised questions about Bitcoin, however. It argued that Bitcoin “host of risks,” like rival cryptos overtaking cryptos, or Bitcoin, is becoming a victim of macro-economic developments that undermine their potential.
The report stated that institutional investors persist that Bitcoin is a valuable hedge against coronavirus inflation. However, there are signs of growth in the world economies. It may dampen the interest in Bitcoin, as the report states.
One month later, the new Citi report “The future of the money” was released. This time, the bank said that Bitcoin’s energy consumption is a challenge in a world increasingly becoming more mindful of the environmental effects of investment decisions.
NYDIG Says that US banks are Welcoming Bitcoin
The adoption of BTC by retail and institutional companies has accelerated exponentially. Crypto company NYDIG recently said hundreds of US banks planned to start providing Bitcoin services.
NYDIG, a partner of CNBC with Fintech-based giant Fidelity, has been enabling US banks to sell Bitcoin to their customers in the months to come. Patrick Sells, head of banking solutions for NYDIG, said that hundreds of American banks had joined the program.
Sells also said that the collaboration aims to facilitate the buying of Bitcoin with existing bank accounts for Americans.