$ 470 Billion Bank Goes Into Crypto – Probably Nothing, Right?

While cryptocurrency traders debate whether Bitcoin (BTC) hits $ 25,000 or $ 15,000 first, the world’s largest financial institutions are laying the groundwork for mass adoption. The proverbial doors are unlikely to open before the United States provides a clear regulatory framework for cryptocurrencies, but regulators and insiders are confident that the indications could come soon in 2023. Meanwhile, they are entering the megabanche space such as BNY Mellon, whose roots date back to 1784.

This week’s Crypto Biz chronicles BNY Mellon’s foray into digital assets, JPMorgan’s ongoing experimentation with blockchain technology, and the new European headquarters of Crypto.com.


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BNY Mellon, America’s oldest bank, launches cryptographic services

Arguably the biggest story of the week was the news of another established financial institution that has entered the cryptocurrency sphere. BNY Mellon, whose predecessor was founded 238 years ago, has announced the launch of a digital custody platform to safeguard customers’ Bitcoin and Ether (ETH) holdings. “With Digital Asset Custody, we continue our journey of trust and innovation in the evolving digital asset space by embracing cutting-edge technology and partnering with fintechs,” said Roman Regelman, CEO of Securities Services and digital banking. To get an idea of ​​BNY Mellon’s size, the bank has over $ 470 billion in assets under custody in 2021.

SWIFT Action: JPMorgan and Visa partner for cross-border blockchain payments

JPMorgan continues to experiment with blockchain technology and digital assets even after its CEO tried to liquidate the industry as a Ponzi scheme. Now, the US financial institution is partnering with Visa to simplify the use of its private blockchain for cross-border payments. The partnership revolves around JPMorgan’s Liink blockchain, designed specifically for cross-border transfers, and the B2B connection of Visa, a cross-border payment network for banks. As Cointelegraph reported, it appears the duo wants to develop an alternative to SWIFT, the dominant global network for secure messaging and transactions.

Crypto.com invests $ 145 million in its new European headquarters

2021 was the year of sponsorship for Crypto.com. Now, 2022 is shaping up to be the year of regulatory approvals. In light of the regulatory momentum in Europe, the cryptocurrency exchange announced this week that Paris, France will become its new European headquarters. The company expects to spend approximately $ 145.7 million to establish its presence in France. Additional resources will be allocated to strengthen the presence of the stock exchange in the region. It appears that Crypto.com is positioning itself for the next bull market. Most of its casual users probably won’t open the app by then.

The Stellar Development Foundation launches a $ 100 million fund to support native adoption of smart contracts

Stellar isn’t getting as much airtime as it did during the 2017 crypto bubble, but the network is still working to drive adoption and innovation on its Soroban smart contract platform. This week, Stellar Development Foundation (SDF), the non-profit organization that supports the development of the Stellar network, announced that it has launched a $ 100 million fund to incentivize developers to build on Soroban. Timer Weller, SDF’s vice president of technology strategy, told Cointelegraph that Soroban was developed to overcome the “friction” of existing blockchain networks.

Before You Go: $ 25,000 or $ 15,000 BTC – Which Comes First?

Bitcoin’s price action is starting to look eerily similar to 2018’s “hell range”. And we all know what happened next (BTC would end up plunging from $ 6,000 to around $ 3,200, marking the last low of the cycle). In this week’s market report, I sat down with Benton Yaun to discuss BTC’s price trajectory and how the latest CPI inflation data could affect the market. You can watch the full replay below.

Crypto Biz is your weekly pulse of the activity behind blockchain and cryptocurrencies sent straight to your inbox every Thursday.

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