Itay Tuchman, an exec at Citigroup, has disclosed that the mega bank is considering entering the crypto market.
Prior to this, Goldman Sachs had already revealed its intention to offer Bitcoin ]to its private wealth management clients in the second quarter of the year.
Following the high interest in Bitcoin, Citigroup Inc is considering joining the likes of Morgan Stanley to enter the crypto market. Itay Tuchman, the global head of foreign exchange at Citigroup in a recent statement revealed that the bank has not made the decision yet. However, different options in their perspective including custody, trading, and financing are being studied. Tuchman also assured that Citigroup is not in a rush to enter the market as crypto is here to stay.
“I don’t have any FOMO [fear of missing out]because I believe that crypto is here to stay and that we are just at the very beginning of the market,” he said.
Citigroup has been pro-Bitcoin for some time now. In a recent 108 page report released by the bank, Bitcoin was mentioned as the preferred currency for global trade despite the challenges that may limit its use. Tuchman disclosed that Citigroup has, since August 2020, seen a massive rise of Bitcoin interest among clients including the largest asset managers.
Clients have mounted pressure on the bank to permit them to trade in different cryptos and use crypto holdings to fund deals. Regardless of the pressure, Tuchman believes that the bank will only implement something that can be regulated.
“We shouldn’t do anything that’s not safe and sound. We will jump in when we are confident that we can build something that benefits clients and that regulators can support,” he said.
In comes the institutions
Bitcoin has over the last six months reacted to the institutional demand catapulting the price from $15,000 to $63,000 within that period. The underlying factor of the late 2017 and early 2018 bull run was the high retail interest with little institutional demand. The current price surge involves both interests at a high level.
Prior to this announcement, Goldman Sachs has already revealed its intention to offer Bitcoin exposure to its private wealth management in the second quarter of the year. This follows a decision by the bank to restart its crypto trading desk.
And it’s not just Goldman Sachs, Bank of New York Mellon, and JPMorgan have also revealed to be making efforts to enter the Bitcoin market. With time, the banks will be able to hold and transfer Bitcoin and other cryptos not yet specified on behalf of the asset management clients. Morgan Stanley remains the first megabank in the US to grant wealth management clients access to Bitcoin through a pair of external crypto funds.
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