The Financial Times reports that major traditional financial institutions, including Standard Chartered, Nomura and Charles Schwab, are developing their own cryptocurrency trading platforms.
It certainly makes sense for Wall Street giants to launch their own cryptocurrency firms as investment firms and asset managers continue to be interested in investing in digital assets, the publication says.
If a big financial player with a big name launches its crypto-platform, it could raise significant funds.
“Large traditional institutional investors who have been in the market for a long time and have built up a lot of relationships definitely prefer to deal with counterparties that have been around for years and are regulated in a traditional way,” explains Gautam Chhugani, senior digital asset analyst at Bernstein.
A recent survey of 250 asset managers by a division of the consulting firm Ernst & Young found that about half of respondents would abandon the services of “native cryptocurrency” firms and move funds to a platform launched by a traditional financial institution.
Ninety percent of those surveyed said they would trust such firms to safeguard their digital assets.
They point out: The large traditional financial firms tend to make more transparent platforms, which is also important for institutional investors.
Earlier this year, it was reported that the U.S. Securities and Exchange Commission began examining Wall Street financial advisers for digital asset custody services.