Since the beginning, banking has been a life-long pursuit. Regardless of how old you are, or what you do for a living, it’s never easy to establish your own bank account or credit history. This is especially true if you don’t have any formal financial training or experience. Luckily for some and unfortunately for others, banking has become easier in recent years because of the advent of virtual currencies like Bitcoin and Ethereum. Cryptocurrencies are digital money that is created and stored electronically.Cryptocurrencies can be used as a medium of exchange, a store of value, or even as an investment . Just like how many financial institutions participate in the stock market today , some banks are also investing in cryptocurrency Today we'll take a look at 10 US banks that are betting on blockchain technology as their future business model and invest in digital currency directly themselves.
What is blockchain?
If you’ve ever opened up a business plan or
read a whitepaper about blockchain, chances are you’ll see the word
“decentralized” thrown around a lot. What you might not know is that blockchain
is a decentralized system, but it’s also managed, or decentralized, meaning
it’s managed by many people or entities. In the case of cryptocurrencies, a
blockchain acts as a public record, or ledger, of all transactions that have
ever occurred with a given cryptocurrency. It’s like a computerized version of
the books kept by financial institutions. It’s decentralized yet managed,
making it an important technology that’s paving the way for future financial
innovation.
JPMorgan’s investments in blockchain
The investment giant, JPMorgan, has been
making headlines lately for its persistent and growing investments in the
blockchain industry. In October of last year, the bank’s head of investment
strategy, Tobias Peterson, spoke about the company’s increasing interest in
blockchain technology as a way to streamline and automate several business processes.
His speech at the Annual Partners in Finance conference in New York went into
detail about the growing importance of blockchain technology as a way to
upgrade existing systems and to create new solutions. Peterson noted that while
blockchain technology might not be the right solution for every company just
yet, it will become more and more relevant as time goes on. Specifically, he
pointed out that the technology could help streamline everything from digital
contracts to the transfer of assets.
Nasdaq invests in blockchain startup tZERO
Nasdaq is one of the world’s largest share
trading platforms. A blockchain startup, tZERO, may be looking to partner with
the company to improve its record-keeping system. The current system is prone
to errors and human error, which makes it vulnerable to fraud. tZERO, which is
based in New York, offers a decentralized platform for trading shares that runs
on blockchain technology. The company claims that it can eliminate the time and
cost associated with submitting and processing trade requests. This could
result in an increase in trading volumes at Nasdaq’s platform. This would be a
positive development for both parties since it would mean more revenue for
Nasdaq and more profits for tZERO.
Goldman Sachs creates a cryptocurrency trading desk
One of the most famous banking institutions
in the world, Goldman Sachs, has a new trading desk dedicated to crypto assets.
This trading desk will help clients trade digital assets like Bitcoin, Ether
and other assets that are based on the blockchain. The recent news came as a
surprise to many people because it wasn’t expected to happen for a while, as
reported by CNBC. What is more interesting is that the trading desk will be
integrated with the bank’s existing global trading platform. As a result,
clients will be able to buy and sell cryptocurrencies right through their
current investment portfolio. In addition, Goldman Sachs wants to give its
clients access to the growing crypto asset market. With its new platform,
clients will be able to access the growing market for investing in
cryptocurrencies. This development shows that banks are becoming a lot more
active in their approach towards crypto assets.
Morgan Stanley launches a blockchain platform
Morgan Stanley, one of the most established
investment banks in the world, has launched a new blockchain-based platform.
The platform, called “Investor Blockchain,” allows investors to trade around
securities like stocks, bonds or commodities. It also allows investors to
create custom investment portfolios. Investor Blockchain will be available to a
wide range of investors, including institutional investors and hedge funds.
Some of the features of the platform include a marketplace, where third-party
services can be offered, and a partnership system, where external investment
firms can post investment opportunities to be bought and sold by investors.
Investor Blockchain is a great example of the kind of innovation that will be
spurred by the application of blockchain technology to the financial sector.
Conclusion
Banking has been a long and challenging
road for most people. Now, with the help of virtual currencies like Bitcoin and
Ethereum, it may just become a little easier. If you’ve been thinking about
establishing a bank account or trying to get a new credit card, now may be your
best chance. Many of the world’s largest banks have announced plans to offer
their customers the opportunity to use virtual currencies. These include JP
Morgan Chase, Citigroup, Wells Fargo and Bank of America.
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