As crypto traders debate whether Bitcoin (BTC) will hit $25,000 or $15,000 first, the world’s largest financial institutions are laying the groundwork for its mass adoption. The proverbial floodgates are unlikely to open before the United States provides a clear regulatory framework for cryptocurrencies, but regulators and industry insiders are confident guidance could come as early as 2023. Meanwhile, megabanks like BNY Mellon, whose roots go back to 1784, are entering the space.
This week’s Crypto Biz chronicles BNY Mellon’s foray into digital assets, JPMorgan’s experimentation with Blockchain technology, and Crypto.com’s new European headquarters.
BNY Mellon Launches Cryptocurrency Services
The biggest news of the week has been the entry of another established financial institution into the crypto sphere. BNY Mellon, whose predecessor was founded 238 years ago, announced the launch of a digital custody platform to safeguard its clients’ Bitcoin and Ether (ETH) holdings. “With Digital Asset Custody, we continue our journey of trust and innovation in the ever-evolving space of digital assets, while embracing leading technology and collaborating with fintech companies,” said Roman Regelman, CEO of securities and digital services of the bank. To get an idea of the size of BNY Mellon, the bank had more than $470 billion in assets under custody in 2021.
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 dismiss the sector as a Ponzi scheme. Now, the US financial institution is partnering with Visa to streamline the use of its private blockchain for cross-border payments. The partnership focuses on JPMorgan’s Liink blockchain, which has been designed specifically for international transfers, and Visa’s B2B connect, a cross-border payments network for banks. As Cointelegraph reported, it appears that the duo wants to develop an alternative to SWIFT, the dominant global network for secure messaging and transactions.
Crypto.com invests USD 145 million in its new European headquarters
2021 was the year of sports sponsorships for Crypto.com. Now, 2022 is shaping up to be the year of regulatory licensing. In light of the regulatory relevance in Europe, the exchange announced this week that Paris, France would become its new European headquarters. The company plans to spend about $145.7 million to establish its presence in France. The additional resources will go towards boosting the exchange’s presence throughout the region. It looks like Crypto.com is positioning itself for the next bull market. Most of your casual retail users probably won’t have access to the app until then.
Bonjour Paris
We’re excited to deepen our commitment and presence in France, by making Paris our new European regional HQ
Full details:https://t.co/nBoixpyMHi pic.twitter.com/EhkbKYUOZQ
— Crypto.com (@cryptocom) October 12, 2022
Stellar Development Foundation Launches $100 Million Fund to Support Native Smart Contract Adoption
Stellar is not as prominent as it was during the 2017 crypto bubble, but the network is still working to spur adoption and innovation on its Soroban smart contract platform. This week, the Stellar Development Foundation (SDF), the non-profit organization that supports the development of the network, announced that it had launched a $100 million fund to encourage developers to base their projects on Soroban. Timer Weller, vice president of technology strategy at SDF, told Cointelegraph that Soroban was developed to overcome the “friction” of existing blockchain networks.
Before You Go: BTC Priced at $25,000 or $15,000, Which Will Happen First?
Bitcoin price action is starting to look eerily like the “range from hell” of 2018. And we all know what happened after that (BTC would eventually crash from $6,000 to roughly $3,200, marking the ultimate bottom of the cycle). In this week’s edition of The Market Report, I sat down with Benton Yaun to discuss BTC’s price path and how the latest CPI inflation data could affect the market. You can watch the full replay at the link below.
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