US Banks can now offer cryptocurrency custody

Big news, which may have been the catalyst for the big moves we saw in crypto prices over the last few days. Existing crypto businesses are happy, as this development provides more assurances to the retail crowd in regards to security, which invariably might mean more customers to the crypto businesses.

Of course the bigger picture is captured in the following quote:

A lack of regulatory clarity has been a big roadblock to more institutional activity in crypto, and major pronouncements like this help move the needle.

Perhaps this clears the way for even more institutional money to flow into the market.

From safe-deposit boxes to virtual vaults, we must ensure banks can meet the financial services needs of their customers today," said Acting Comptroller of the Currency Brian P. Brooks. "This opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.

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Followup, also from Forbes, puts the developments in clear context as to the positives for the industry as a whole.

Reason 1: A Regulatory Stamp Of Approval
Reason 2: It Will Bring New Investors Into Crypto
Reason 3: It Will Allow Big Banks To Service Crypto Companies, Reducing Fraud

Wow! We are gonna see some new players in the market now.

I think so. Traditional banks are seeing competition from many more different places these days. Tech companies are getting into the financial space. Mobile payments are picking up. Online banks are picking up. Fintechs are looking to disrupt what has historically been the role of banks.

And the younger generations aren’t concerned with having that traditional banking relationship. So the banks must go where those with money go. Crypto is one of those places, or at least will be more and more down the road.