The New York Times recently published an article titled "Banks Tried to Kill Crypto and Failed. Now They're Embracing It (Slowly)," which discusses how banks are starting to embrace cryptocurrencies and blockchain technology after initially trying to stifle their growth.
Cryptocurrencies are the most visible aspect of blockchain technology, but blockchain has the potential to revolutionize many industries, including banking. In the years to come, banks are likely to be major players in the development and adoption of blockchain technology.
Here are some specific examples of how banks are taking steps to embrace the digital assets industry:
▶ Bank of America: In the past year, recognizing the promise of blockchain technology, filed the highest number of patent applications in the bank's history, with more than 160 patents in digital payment technologies.
▶ Bank of New York Mellon and Northern Trust: They are actively engaged in providing custodial services to their clients, essentially functioning as banks for other financial institutions, that would hold Bitcoin.
▶ Goldman Sachs: Has initiated the publication of digital asset prices on its Marquee platform, catering to significant clients such as hedge funds. This move represents their readiness for a potential future where the bank may support cryptocurrency trading.
As the technology continues to develop and mature, we can expect to see even more banks getting involved in this space.
Benefits that banks can expect to gain by embracing cryptocurrencies and blockchain technology:
▶ Increased efficiency and reduced costs: Blockchain technology can help banks streamline their operations and reduce costs by automating many manual processes.
▶ Improved security: Blockchain technology is highly secure and can help banks protect their customers' data from fraud and cyberattacks.
▶ New revenue opportunities: Banks can offer new products and services to their customers, such as cryptocurrency trading and custody services.
As banks continue to invest in and adopt these technologies, we can expect to see a more efficient, secure, and innovative financial system in the years to come.