After cryptocurrencies shocked the world in 2017, most of them increasing hundreds of times in value and making investors serious amounts of money, everyone is now eagerly anticipating what is going to happen next.
There’s a very good chance that the cryptocurrency market cap is going to surge far beyond the $400 Billion mark it’s currently sitting at, and financial institutions around the world are very aware, and are prepairing to cash in.
Unlike the stock market, the cryptocurrency markets are accessible to everyone providing you have funds to invest and an internet connection. Cryptocurrency exchanges provide a platform for users to trade these digital assets, and charge a small fee on each transaction.
Since cryptocurrencies have gained such world wide attention recently, these exchanges are making a fortune, and traditional financial institutions want a piece of the pie.
Binance cryptocurrency exchange for example has only been around for 9 months and is already made at least $150 million in profit this past quarter quarter! That’s more that Germany’s biggest bank! And almost as much as social media platform Twitter has made since it was launched in 2006, 12 years ago!
Which banks are publicly working on crypto exchanges?
Goldman Sachs crypto exchange
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base. It’s no wonder they’re actively researching the cryptocurrency space.
Though at first their analysts tried to downplay and criticise the emerging technology, it’s clear they’ve now recognised they cannot fight against, let alone beat it and are instead joining the revolution and cashing in on it.
Japanese Bank SBI launching crypto exchange
Recently too another banking giant has followed suit. Japanese banking giant SBI have reportedly been working on launching a cryptocurrency exchange since 2016, but now they’ve announced it will be ready for launch in Summer 2018.
If they pull of the launch successfully, the exchange will be Japan’s first ever bank owned cryptocurrency exchange and the people behind the operation are very optimistic, expecting it to become ‘number one’ very quickly.
Other cryptocurrency banking partnerships
Ripple aim to remove the need for the Swift network, the system the majority of banks use to communicate around the world and have been making positive moves in the right direction!
Banks have recently come to change their stance on how they view cryptocurrency. Many were publicly criticising the technology, but recently they’ve been more focused on how it can positively affect business rather than quash it.
While some banks have partnered with existing projects, other blockchain projects are attempting to completely remove the need for bank accounts.
Monaco for example, along with a number of other similar projects are developing debit cards to allow users to spend cryptocurreny in shops, seamlessly transitioning between fiat and crypto.
It seems everyone is scrambling to gain traction in this seemingly new era of global banking and finance. Some will succeed and others will fail and the future it’s going to be an interesting show to watch!