These American Banks are All Set to Partner with Cryptocurrency Firms

This might bring a new boom to the cryptocurrency market. 

The cryptocurrency market is rapidly attracting more investors and American Bankers Association has decided to partner with cryptocurrency firms to meet its client's interests. The ABA sent out a 20-pages report that gives a detailed crypto analysis, including a glossary, and outlines cryptocurrency activities and uses cases for the banking sector along with regulatory issues and revenue models.

The report breaks down crypto assets into four categories, CBDC, cryptocurrencies, NFTs, and stablecoins. The report states the use cases of cryptocurrency for banking sectors as follows: 

• Store of value – Banks can earn revenue by enabling crypto buying and selling on their platforms. 
• Wallet providers – Banks can offer crypto wallets with service fees. 
• Interest accounts – Banks can earn a fee on interest by enabling lending operations to investors. 
• Lending – Banks can offer loans in the form of cryptocurrency loans against a fee. 
• Payments – Banks can charge crypto fees similar to debit and credit cards.
• Brokerage – Banks can collect spread from cryptocurrency transactions and earn revenue. 
• Exchange trading – Banks can obtain revenue from transaction fees, deposit fees, listing charges, etc. 
• Network utility – Banks can offer utility tokens and earn revenue for selling them. 
• Asset Management – Banks can offer crypto portfolio management services and charge a fee.

The Latest Update 

Wells Fargo is preparing to accept cryptocurrency investments to clients. The bank has announced that it will offer crypto exposure to its high net worth clients. After a re-evaluation on the bank's verdict on cryptocurrency, Wells Fargo believes that the cryptocurrency space has hit an evolution and maturation of its developments that have now made it a viable investable asset. 

Wells Fargo is not the first bank to do so. Goldman Sachs revealed that 50% of its ultra-wealthy clients want an increasing exposure to cryptocurrencies. Goldman Sachs is now preparing to enable the trade of Bitcoin and Ether Options and Futures. 

JP Morgan also accelerated its investment in companies with Bitcoin exposure owing to the increasing demand for cryptocurrencies. At this rate, it is expected that more banks with cater to the wants of cryptocurrencies and provide their clients with an influx of products for more exposure.