The integration of the banking industry and listed companies into the crypto industry is undoubtedly a solid force to support the confidence of the wait-and-see to enter the market.
Title of the original text: “Successful by Bitcoin? Sorting out the digital currency layout of banking giants and traditional institutions”
Written by: Li Zheweng
Musk himself may not have thought that Tesla, which he founded, spent 1.5 billion US dollars to buy Bitcoin, and only 10 days after buying Bitcoin, the floating profit reached 800 million US dollars, which exceeded the profitability of his own car for more than ten years. The “call orders” of large traditional institutions have also directly brought the market value of Bitcoin to the trillion-dollar mark.
At the same time, Saylor’s micro-strategy company once again successfully raised over US$1.05 billion through convertible bonds to continue to purchase BTC “ammunition”. The company has successively bought more than 70,000 bitcoins since last year.
This enthusiasm for admission is both an affirmation of BTC’s status as “Noah’s Ark” in the era of global water release. Of course, in addition to these institutions and rich people who have bought in the market, the traditional banking industry has also accelerated its embrace and openness to cryptocurrencies in the past two years, which will pave the way for wider acceptance of cryptocurrencies in the future.
PANews is here to sort out the banking industry and the integration of major listed companies into the crypto industry so far. They are undoubtedly a solid force to support the confidence of the wait-and-see to enter the market.
Banking and Encryption Enterprises: Two-way Openness, Accelerating Integration
As we all know, a prejudice of many regulators towards the crypto market is: lack of reliable custody methods. In other words, many crypto industry institutions cannot access complete banking services. This is undoubtedly the core constraint that prevents listed companies from deploying crypto assets. This situation has undergone tremendous changes in 2020.
In the statistics, PANews included 35 banks that are friendly to the crypto industry and have substantial business dealings with crypto-native companies, of which 11 are concentrated in the United States, 10 are concentrated in Switzerland, and the others are mainly located in Europe such as the United Kingdom, Germany, and Malta. Financial center. The median assets of these banks are 866 million U.S. dollars, and 6 have total assets exceeding 2 billion U.S. dollars.
The strong position of the United States in the crypto banking industry is not only the result of its long-term continuous exploration of the crypto industry, but also a series of administrative orders issued by the Office of the Comptroller of the Currency (OCC) last year, which has promoted the rapid growth of crypto-native enterprises and banks. Run to each other and hug each other.
For example, the U.S. OCC Agency launched Payment Charters, allowing crypto-native companies such as Kraken, Paxos, and BitGo to convert their state-level trust company licenses into national trust bank licenses, upgrade them to banks, and mature later At that time, the aforementioned similar institutions may be opened to directly access the Fed payment system;
OCC also opened up exposure to the direct custody of encrypted assets in the U.S. banking industry, and even further allowed the banking industry to use public chains and encrypted USD stablecoins as the infrastructure for payment, clearing, and settlement in the future. It is against this background that PayPal is trying to negotiate the acquisition of BitGo and other crypto-native custodians. The accelerated listing of Coinbase undoubtedly benefited from this. As of February 20th, Coinbase is in the Nasdaq private equity market. The valuation has reached hundreds of billions of dollars.
It can be seen that many banking giants have entered the game or made positive statements.
According to PANews, JPMorgan Chase is already providing banking services for US-licensed exchanges such as Coinbase and Gemini. Daniel Pinto, co-president of JP Morgan Chase, recently stated that the agency will eventually have to launch a Bitcoin service.
BNY Mellon, one of the world’s largest custodian banks, announced that it will launch a new digital currency custody unit in 2021 to help users trade digital assets, including cryptocurrencies.
Another concentration of crypto-friendly banks that deserves attention is undoubtedly Switzerland. In fact, some of its opening-up measures may be earlier than the United States. In 2019, the Swiss Financial Supervisory Authority (FINMA) set the limit of 100 million Swiss francs in deposits, opened up qualified crypto companies to apply for banking licenses, and allowed the traditional banking industry to participate in this process; in the same year, it approved Vontobel, Many traditional large banks in the country, including Swissquote, have carried out encrypted asset custody business, and approved SEBA and Sygnum’s banking licenses based on encrypted asset business.
In Asia, DBS Bank of Singapore took the lead in launching an integrated platform for digital asset issuance, trading and custody. It supports exchanges between BTC, ETH, BCH, XRP and Singapore dollar, U.S. dollar, Hong Kong dollar and Japanese yen in advance. service.
BTC will soon become the standard equipment for listed companies, run and enter to relieve Fomo’s emotions
If the continuous iteration of traditional large banks and encrypted banks is the basic ticket for companies like Tesla to enter the market, then the disposition of Bitcoin by a public company will prepare enough playmates for Tesla.
According to statistics from bitcointreasuries.org, a total of 19 North American/European listed companies have allocated BTC so far. In addition, “ETF-like” funds such as Grayscale and CoinShares have acted as the mainstay, managing a huge amount of BTC. The total amount of BTC held reached an astonishing 948,720 pieces, accounting for 4.747% of the total amount of BTC.
It is particularly noteworthy that the business of Grayscale has soared in 2020. AUM has increased by nearly 50 times, reaching the level of 17 billion + USD in early 2021. As of February 20th, Beijing time, Grayscale’s AUM has already Reached 43.626 billion US dollars.
The market expects that such funds will have more competitors in 2021. Bitcoin ETFs that have not been reviewed in the United States also have a higher probability of being approved for launch this year, and they may have more competitive management than Grayscale Fee rate.
For example, BlockFi’s newly launched Bitcoin trust fund has an annual management fee rate of only 1.75%, which is 0.25% lower than the gray fund GBTC. Recently, two BTC ETFs have started trading in the north of the United States and Canada, the first of which The ETF named BTCC recorded a single-day trading volume of US$165 million, and it has even attracted the attention of well-known fund managers such as Dan Bin in China.
For listed institutions such as Tesla, they will undoubtedly have more abundant tools and channels to configure and arbitrage BTC, and this kind of direct purchase of BTC through the fully compliant securities market will surely become a more secure choice for listed institutions.
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