Switzerland, Feb 24, 2021 /AlexaBlockchain/ – Bordier & Cie SCmA, a leading Swiss private bank founded in 1844, has started offering cryptocurrency trading services to its clients.
Bordier clients can now securely buy, hold and trade cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash and Tezos.
Evrard Bordier, Bordier & Cie’s SCmA Managing Partner, said “We have seen increasing demand from our clients to diversify into alternative asset classes such as digital assets. By partnering with Sygnum Bank, we are providing our clients* with a one-stop, integrated solution while empowering them to invest in this new, high growth asset class with complete trust.”
The Cryptocurrency Market Context: What is driving banks to enter into crypto?
The crypto market is now being driven by growing interest in digital assets from institutional investors and large public companies. In 2020, companies like PayPal and Mastercard made significant moves to support cryptocurrencies. Tesla recently announced it had invested $1.5 billion into bitcoin and planned to accept the digital currency as payment for its products. Large investment institutions too are not far behind. Grayscale, a cryptocurrency investment fund manager, saw its Assets Under Management (AUM) grow 1600% over the past year, with the fund now worth a total of $37.8 billion.
Recent Developments Indicates Strong Positive Sentiments from Banks, Institutional Investors, and Public Companies
- JPMorgan’s Global Markets Strategy team recently released a report covering Bitcoin which shows that institutional investors are moving from Gold ETFs to Bitcoin.
- Major investment banks planning to foray into crypto asset class.
- JPMorgan said recently it’s looking seriously at the asset class, and Goldman Sachs has also shown an interest in crypto. A division of Morgan Stanley is reportedly considering adding bitcoin to its list of possible bets. Deutsche Bank is likely to launch its Digital Asset Custody and Prime Brokerage Service for Institutional Clients this year.
- Companies like PayPal and Mastercard have made significant moves to support cryptocurrencies.
- Tesla last week announced it had invested $1.5 billion into bitcoin and planned to accept the digital currency as payment for its products.
- Major public firms across the globe are now evaluating bitcoin investments after Telsla $1.5 Billion investment in Bitcoin
The massive boom in Bitcoin and other cryptos is now enticing more new retail investors to invest and trade in digital assets. Consequently, crypto exchanges are now experiencing record surge in user signups. Exchanges are also facing technical challenges to meet the ever-growing demand from retail investors.