• News
    • Stocks
    • Banks and Finance
    • Companies
    • Crypto
    • Forex
  • Videos
  • Articles
    • Forex CRM
    • Crypto Payments
    • Trading
    • Crypto Exchange Business
    • Forex Business
    • Fintech
    • Liquidity
    • FinTech Awards
  • Liquidity Providers List
  • Crypto Payment Providers

Dark Theme

Crypto Hasn’t Won Over Major Banks Yet. So What’s the Deal?

Crypto Hasn’t Won Over Major Banks Yet. So What’s the Deal?

According to a report issued on Friday by the Basel Committee on Banking Supervision, the major banks' crypto exposure is only worth approximately $9.2 billion, or about 0.01% of the overall exposures that banks must account for when setting capital requirements. Only two banks, which the report did not name, accounted for 40% of the total.

With the steep rise of crypto prices over the last decade, investors and companies have become increasingly interested in crypto-related services like custody, lending, and market making. The big banks dominate other asset classes, but in crypto, cryptocurrency start-ups have almost entirely taken over.

The resulting boom in the crypto sector has benefited companies such as Coinbase Global. Rather than banking, institutional investors have turned to Coinbase and other similar firms to handle operations and store their digital assets. According to the report, while some traditional market makers, like Jane Street Capital, have expanded their crypto services, most major market-maker banks have not done so.

Based on the Basel monitoring exercise, 19 out of 182 banks reported having any crypto exposure. As the report mentioned, because the banks were reporting crypto data in this way for the first time, it was difficult to tell whether they were under- or overreporting their exposures and whether they were applying the same approach as each other.

About 30% of banks' crypto exposure was in Bitcoin, according to the report, and another significant portion was in Grayscale Bitcoin Trust, an investment fund that holds the tokens. The exposure of banks to Ether was about 20%.

Although the rapid growth of the crypto services industry is evident, it is clear that traditional financial institutions have not yet warmed up to it to a significant extent.

The CEO of JPMorgan Chase, Jamie Dimon, said in congressional testimony last week that he is skeptical about cryptocurrencies, labeling them as "decentralized Ponzi schemes."

While skepticism of executives is one factor, regulators, for the most part, have also made it substantially harder for banks to provide crypto-related services.

Federal Reserve Board guidelines released in August said financial institutions under their supervision should assess whether crypto-related services were "legally permissible" before engaging in them.

A number of government agencies, including the Treasury Department and the Federal Bureau of Investigation, have expressed concern about the potential use of cryptocurrency in criminal activity as well as financial institutions' ability to implement the same anti-money laundering protections as they do for traditional assets.

There may be some clarity regarding digital assets next year as Congress considers legislation specifying which agencies are responsible for tokens and how they should be treated.

This may provide an opportunity for token prices to increase, as new institutions may seek access to the industry. However, it could pose a threat to companies like Coinbase, which may face new competition.

As of right now, major banks have essentially ceded the crypto sector to businesses and crypto start-ups.

Subscribe Our Newsletter

Hong Kong Sets Stage For E-CNY Use, To Launch Pilot ‘Soon After Spring Festival’
Hong Kong Sets Stage For E-CNY Use, To Launch Pilot ‘Soon After Spring Festival’

He did not provide a specific debut schedule, instead saying that it would start shortly after the Spring Festival. This season finishes on the 15th day of the Lunar New Year, which occurs on February 15, according to Chinese traditions.

Banks and Finance
Bitcoin Reclaims the $50,000 Mark: Here’s What the Experts Say
Bitcoin Reclaims the $50,000 Mark: Here’s What the Experts Say

For the first time in three months, Bitcoin has crossed the $50,000 price barrier, bringing its market capitalization closer to $1 trillion.

Crypto
Liquidity Provider

How to Identify Liquidity?
Let's find out how to identify Forex Liquidity, how to identify the liquidity of cryptocurrencies, and how to pick the best LP.

discover
Top 5 Most Reliable KYC Technology Providers

Constantine

Top 5 Most Reliable KYC Technology Providers

The development of trade in the financial sector has contributed to the creation of numerous financial markets that offer incredible opportunities for enrichment.

Crypto Exchange Business

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Alexander

    Full Bitcoin Price History: From 2009 to 2022

    https://liquidity-provider.com/app/uploads/2023/01/cover-11-300x203.png

    Constantine

    Top 5 Most Reliable KYC Technology Providers

    https://liquidity-provider.com/app/uploads/2023/01/cover-10-300x203.png

    Alexander

    The Best Crypto Wallets of 2022: Top 5 Picks

    https://liquidity-provider.com/app/uploads/2023/01/cover-2-300x203.png

    Alexander

    Top 5 Most Reliable Forex Brokers of 2022

    https://liquidity-provider.com/app/uploads/2023/01/cover-1-300x203.png

    Constantine

    5 Top-Tier Breakthrough Trading, Crypto and Fintech Industries Software Solutions in 2022

    https://liquidity-provider.com/app/uploads/2023/01/cover-300x203.png

    Constantine

    5 Most Successful FinTech Industry Startups in 2022

    https://liquidity-provider.com/app/uploads/2022/12/cover-300x203.png

    Constantine

    Top 7 Liquidity Providers of 2022

    https://liquidity-provider.com/app/uploads/2022/12/liquidity-provider-3-300x203.png

    Alexander

    Top 5 Crypto Exchanges of 2022

    https://liquidity-provider.com/app/uploads/2022/12/liquidity-provider-1-300x203.png

    Constantine

    Top 5 Most Distinguished White Label Solutions in 2022

    https://liquidity-provider.com/app/uploads/2022/12/liquidity-provider-2-300x203.png

    Constantine

    What is Crypto Leverage Trading And How Does It Work?

    https://liquidity-provider.com/app/uploads/2022/12/oblozhka-5-300x203.png

    Constantine

    Top 5 Most Prospective Tokens in the Metaverse.

    https://liquidity-provider.com/app/uploads/2022/12/cover-7-300x203.png

    Constantine

    How to Mine Bitcoins? – Beginners Guide

    https://liquidity-provider.com/app/uploads/2022/11/cover-5-300x203.png

    Oliver

    Blockchain for Business. Pros & Cons

    https://liquidity-provider.com/app/uploads/2022/11/oblozhka-1-300x203.png

    Constantine

    The Future of Stablecoins and Central Bank Digital Currencies (CBDCs)

    https://liquidity-provider.com/app/uploads/2022/11/cover-3-300x203.png

    Alexander

    What is Web 3.0 and Why Does it Matter?

    https://liquidity-provider.com/app/uploads/2022/11/cover-1-300x203.png

    Constantine

    5 Benefits of Accepting Crypto Payments for Your Business

    https://liquidity-provider.com/app/uploads/2022/11/cover-300x203.png

    Constantine

    Hot Wallet vs Cold Wallet: Which Do I Need More for Crypto?

    https://liquidity-provider.com/app/uploads/2022/11/oblozhka-5-300x203.png

    Alexander

    What is Hedging and How Does it Work in Trading? — Ultimate Guide

    https://liquidity-provider.com/app/uploads/2022/10/oblozhka-4-300x203.png

    Oliver

    Pre-execution vs Post-execution: What’s the Difference?

    https://liquidity-provider.com/app/uploads/2022/10/oblozhka-1-300x203.png

    Constantine

    What is Slippage in Trading? – Definition

    https://liquidity-provider.com/app/uploads/2022/10/shapka-1-1-300x203.png

    Oliver

    How Forex Brokers Make Money? – A-Book vs. B-Book Model

    https://liquidity-provider.com/app/uploads/2022/10/shapka-2-300x203.png

    Oliver

    What is the Ethereum Merge, And How Will it Change Ethereum?

    https://liquidity-provider.com/app/uploads/2022/10/shapka-1-300x203.png

    Alexander

    How to Spot Cryptocurrency Scams

    https://liquidity-provider.com/app/uploads/2022/10/shapka-300x203.png

    Milena

    Exploring the Metaverse: What Does It Mean for the Future of the Internet?

    https://liquidity-provider.com/app/uploads/2022/10/oblozhka-300x203.png
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
    • Articles
      • Forex CRM
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy