Today, the price of a single Bitcoin is nearly $50,000. This means that cryptocurrency investments are once again hot commodities. Decentralized blockchain technology, according to cryptocurrency bulls, will allow cryptocurrencies to disrupt traditional financial institutions and banks in the long term.
According to a new Blockdata report, major banks are no longer ignoring the threat posed by cryptocurrencies. Of the world’s 100 largest banks, 55 have already made investments in cryptocurrencies, either directly or through the support of blockchain-oriented companies. Investing in cryptocurrencies and crypto technology has become a major focus for these seven bank stocks.
Standard Chartered Ltd.
Standard Chartered manages $789 billion in assets, making it one of the largest British multinational banks and financial services companies. More than any other major bank, Standard Chartered has reportedly invested $380 million in the blockchain, according to Blockdata.
Bank of America Corporation holds Ripple Labs Inc., Cobalt Corp., Dianrong Corp. A cryptocurrency brokerage and exchange will be launched by Standard Chartered and BC Technology Group Co. Ltd. in Europe and the United Kingdom, the bank announced in June. Those who are bullish on cryptocurrencies may want to consider picking up shares of Standard Chartered Bank now that the price has fallen.
Bank of New York Mellon Corp.
BNY Mellon is the most active investor in crypto among U.S. banks, according to Blockdata With more than a century of experience in asset servicing and management, the bank is one of the oldest in the country. It currently manages assets worth around $470 billion. BNY Mellon has invested $321 million in the blockchain so far.
Projects like Fireblocks, HQLAx, R3, and Fnality International are among the ones in which the bank has invested. Additionally, in February, BNY Mellon announced it would begin financing Bitcoin and other cryptocurrencies, laying the groundwork for the eventual integration of cryptocurrencies into its custodial banking network.
Citigroup is a major bank in the United States, with assets under management totaling approximately $2.26 trillion. A total of $279 million has been invested by the bank in at least 14 different cryptocurrencies, including BUCK, Chain, SETL, Axoni, Cobalt, Digital Asset, HQLAx, R3, Komgo, and Symbiont, according to reports.
A new unit within Citi’s wealth management division, the Digital Assets Group, was launched in June. Clients of Citi will reportedly benefit from the new division’s assistance with cryptocurrency and nonfungible token investments. Citi’s global head of foreign exchange told the Financial Times in May that the bank is looking into cryptocurrency trading, custody, and funding.
UBS Group AG
A total of $1.13 trillion in assets are managed by UBS, a Swiss financial services company. A total of $266 million has been invested in cryptocurrencies by the firm. Axoni, R3, Fnality International, and ConsenSys are among the companies that have made investments in this fund.
As of July, the team of global wealth managers at UBS advised investors to “stay clear” of cryptocurrency and instead focus on less risky investments. Customer “FOMO,” or apprehension about missing out, is rampant in the cryptocurrency market, according to UBS CEO Ralph Hamers. A separate report from Bloomberg in May said UBS is also looking into ways to offer its wealthiest clients investment opportunities in digital currencies.
BNP Paribas ADR (BNPQY)
BNP Paribas, headquartered in France, is the country’s largest bank by assets under management, with $3.08 trillion. BNP has already invested in at least nine cryptocurrencies, including Digital Asset, HQLAx, METRON, R3, TradelX, Komgo, and Token, according to Blockstream.
An estimated $236 million was invested in total. Edmund Shing, Chief Investment Officer at BNP Paribas, outlined several reasons why Bitcoin is both an appealing and a very risky investment in March of this year. Because of its volatility and the presence of a small number of anonymous Bitcoin “whales,” according to him, Bitcoin has seen “impressive price appreciation” since its inception.
Morgan Stanley (MS)
As one of the largest investment banks in the United States, Morgan Stanley has about $1.12 trillion in client assets under management. Although Morgan Stanley has only made three significant cryptocurrency investments in NYDIG, R3, and Securitize, those investments are estimated to be worth $234 million.
Morgan Stanley. By offering access to Bitcoin investment funds to its wealthy clients for the first time, Morgan Stanley made history in the United States of America. Clients with assets of at least $2 million and “an aggressive risk tolerance” will be able to use the service right away. Morgan Stanley, on the other hand, will only allow clients to invest a maximum of 2.5% of their net worth in Bitcoin.