More and more private banks are taking a keen interest in cryptocurrencies, which are appealing to some of their investment-minded customers. Several US banks have already overcome their fears and taken the plunge.
U.S. banks open up to cryptocurrencies
Several US banks have decided to offer their customers the opportunity to invest in cryptocurrencies, and have started marketing dedicated banking products.
This is notably the case at Goldman Sachs, which has launched bitcoin-related stock market bets, and set up a team specializing in cryptocurrency trading, attached to the group's "International Currencies and Emerging Markets" division.
Investment bank Morgan Stanley markets three bitcoin funds. To minimize risk, these funds are reserved for wealthier clients with assets of at least $2 million. Finally, Bank of New York Mellon is now helping its customers to manage their digital assets.
On the Old Continent, private banks remain cautious
In Europe, private banks are more cautious. Swiss private bank Edmond de Rothschild, for example, refuses to initiate cryptocurrency transactions, but acknowledges that it will not refuse a client's request for assistance. The family-owned group considers that it is still too early to venture into this market, which it believes is set to grow.
Swiss bank UBS, on the other hand, seems ready to take the plunge, as reported by Bloomberg. Like Morgan Stanley, it would reserve cryptocurrency investments for its wealthiest clients in order to minimize risk. The latter would have the option of investing via investment vehicles.
The reluctance of private banks is explained by the high volatility of digital assets. For example, the price of bitcoin recently plummeted as soon as Elon Musk announced his likely intention to sell all his investments in the cryptocurrency.