- Bank of New York Mellon Corp. (NYSE: BK) invested US$321 million in blockchain projects.
- Citigroup Inc. (NYSE: C) has invested US$279 million in 14 cryptocurrency companies.
- UBS Group AG (NYSE: UBS) invested US$266 million in cryptocurrency and blockchain.
The cryptocurrency market is back in limelight after Bitcoin crossed the US$45,000 mark recently. Crypto experts had long predicted that digital currencies would gain more popularity over traditional banknotes due to their decentralized nature, which blocks any third-party access to your transaction data.
Moreover, the US banks’ significant investments in cryptocurrencies and blockchain reflect how the traditional financial markets are adopting the technological revolution.
According to the New York Digital Investment Group LLC (NYDIG), hundreds of banks have begun investing in cryptocurrencies or offering crypto services to their clients. The demand from customers has prompted these banks to launch crypto services.
However, despite these signs of progress, challenges remain for the crypto market. For instance, government regulations could make or break the market. And because of the risks involved, banks are offering crypto services only to limited clients.
Here are some of the top banks investing in cryptocurrency and blockchain.
Also read: Nine best stablecoins of 2021
Bank of New York Mellon Corp. (NYSE: BK)
This New York-based bank helps clients manage financial assets. It is one of the oldest American banks and has invested about US$321 million in the blockchain. It has invested in ventures like Fireblocks, Fnality International, R3, and HQLAx.
Citigroup Inc. (NYSE: C)
This investment bank and financial services company is headquartered in New York. It offers all regular financial services, including savings account, mortgage, wealth management, etc. Citigroup is said to have invested around US$279 million in 14 crypto companies, including BUCK, Komgo, Axoni, Cobalt, HQLAx, Chain, Symbiont, R3, SELT, and Digital Asset.
The company also has launched a separate crypto section to help Bitcoin and stablecoin customers. In addition, the bank is also considering trading in digital coins and financing, according to industry reports.
UBS Group AG (NYSE: UBS)
UBS is a major multinational investment bank headquartered in Zürich, Switzerland. It provides various banking and financial services, including lending and wealth management. It also has operations in the US. The Zürich-based bank has invested over US$266 million in cryptocurrency and related technologies. The projects include ConsenSys, Axoni, Fnality International, and R3. It is also planning to offer digital coin investment options to select clients, according to reports.
Morgan Stanley (NYSE: MS)
Morgan Stanley is another major global investment bank with its headquarters in New York. It is one of the oldest banks in the US. It offers services like wealth management, institutional securities, etc. Morgan Stanley has invested US$234 million in three cryptocurrency projects: Securitize, NYDIG, and R3. It is the first US bank that offered bitcoin investment funds to select clients. The offer is limited to clients having US$2 million and risk tolerance. The investment is also limited to 2.5 percent of a client’s wealth.
JPMorgan Chase & Co. (NYSE: JPM)
JPMorgan Chase & Co. is a major financial holding company headquartered in New York. Its offers investment banking, financial services, ATM, and asset management services, etc. This financial company has invested around US$206 million in digital assets, according to reports. The projects are R3, Axoni, HQLAx, Digital Asset, and ConsenSys. In addition, the bank is reportedly offering investment options in six cryptocurrency funds to clients.
In May, Wells Fargo, another major US multinational financial services company, also had announced crypto services to limited clients. However, it hasn’t divulged any other details.
The cryptocurrency market is expanding globally. Experts believe the crypto market might overtake the traditional financial market in the future as more governments and financial institutions start to recognize digital currencies.