Bank of America joins the Bitcoin craze by offering BTC futures trading
|- Bank of America has approved Bitcoin futures trading for select clients.
- The US bank initially had a conservative approach, now plans to use Chicago Mercantile Exchange (CME) futures based on sources.
- Investment banks are reportedly offering crypto products as an investment to clients as Goldman Sachs relaunches its crypto trading desk.
More banking institutions are embracing Bitcoin. Based on anonymous sources, Bank of America is ready to offer BTC futures trading to its clients.
Bank of America offers BTC futures trading, regulatory concerns prevail
Sources that choose to remain anonymous have reported that Bitcoin futures trading is live for a selective group of clients of Bank of America, the second-largest bank in the US. Reportedly, the financial institution is yet to offer this service to all of its clients.
Federal Reserve chair Jerome Powell weighed in on the need for cryptocurrency and stablecoins in the US economy. The Fed joined several other regulatory authorities across the world in scrutinizing these digital assets. Emphasis was placed on the need for stricter regulation.
Despite the regulatory uncertainty, investment banks have plans to allow clients to invest in cryptocurrency products. Goldman Sachs has recently confirmed the relaunch of its crypto trading desk after a three-year wait. The investment banking giant had offered crypto trade in association with the CME Group and Bank of America is likely to use the same for its clients.
The CME Group launched its Bitcoin futures trading in 2017. Since then the platform has noted an increase in investment and active participation from institutions.
It is highly likely that Bank of America will be joined by other banks and investment banks that offer crypto products to clients across the US. It’s interesting to see that the American multinational investment bank blocked its clients from trading in crypto-related products in 2018 and now it has reversed its stance on crypto.
Bitcoin is coming to hundreds of US banks
In May 2021, crypto custody firm NYDIG announced that customers of some US banks will soon be able to trade and hold Bitcoin through their existing accounts.
Yan Zhao, president of NYDIG said,
Banks are asking for Bitcoin because they can see their customers sending dollars to Coinbase and other crypto exchanges.
NYDIG is a subsidiary of Stone Ridge, an asset management company based in New York. They have partnered with Fidelity National Information Services and announced plans to roll out Bitcoin offerings to customers of several US banks.
According to NYDIG, hundreds of banks have enrolled with the firm and lenders like small community banks have also agreed to participate. BoA’s announcement may be the first of many others if institutions’ interest in Bitcoin products continues to grow.
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