66% of the largest banks supported cryptocurrency trading – CoinGecko
Date: 2023-07-30 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
66% or 20 of the world's top 30 banks by assets under management support cryptocurrency trading through regulated exchanges, according to a report by CoinGecko.
At the same time, in a wider sample, where the opinion of the top 50 world banks was studied, the results are as follows: 37 of them (74%) support cryptocurrency trading by connecting to regulated exchanges. However, none of them support retail cryptocurrency trading or expansion from their respective native platforms.
"In 2023, the world's 50 largest banks managed $89.37 trillion in total assets. The list is dominated by the two largest economies, the United States and China, with 19 banks in the top 50. All four of the largest banks are Chinese and manage assets worth $19.87 trillion, which is more than 20% of the total," the report said.
Moreover, all 13 banks that do not support crypto trading are based in China. This is despite the fact that Hong Kong is open to cryptocurrency trading, inviting crypto companies to the region.
What prevents banks from accepting cryptocurrencies
However, analysts point out that the adoption of blockchain-based solutions by large banks is relatively slow compared to other sectors. Strict regulations, market volatility, and recent problems with major market players such as FTX are hindering the integration of cryptocurrency into these major banks.
One of the ways banks are making the transition to full-fledged cryptocurrency retail trading is by partnering with cryptocurrency custody firms. One firm that has signed deals with several of the top 50 banks is Swiss digital asset custody company Metaco.
Institutional trading is gaining momentum
However, institutional clients have been able to access cryptocurrencies in several banks for several years.
JPMorgan was the first bank to develop its own digital currency, JPM Coin, back in 2019 on the Ethereum blockchain. Goldman Sachs announced the creation of a cryptocurrency trading department in 2021 as part of the Global Currencies and Emerging Markets division.
In addition, Société Générale launched its own stablecoin (EURCV) on Ethereum in April this year. The stablecoin is available for institutional investors to settle or provide liquidity. Then, in July, the bank received a license from the local regulator to operate in the cryptocurrency market.
