U.S. Financial Institutions Facilitated a Cryprocurrency Client Exposure Totaling $201 Billion in the Year 2023
In the dynamic world of finance, the landscape of cryptocurrency services is undergoing significant changes.
According to recent data, American banks are showing a notable increase in providing crypto services to their clients. However, the specific banks that have demonstrated this growth remain unspecified.
Meanwhile, across the Atlantic, the crypto custody space in Europe is flourishing. In the second half of 2023, assets under custody grew by an impressive 49% to reach €5.5 billion ($5.8bn). This growth was primarily focused on spot crypto rather than tokenized assets or Exchange-Traded Products (ETPs).
The Basel Committee on Banking Supervision published its Basel III monitoring statistics for December 2023, which included crypto-asset exposures. The patterns from the previous period were repeated in these statistics, with 94% of custody being for spot crypto.
The Americas, however, are almost entirely absent from the crypto custody space due to the Securities and Exchange Commission's (SEC) SAB 121 accounting rule. The exact nature of this rule is not specified in the provided text. It is anticipated that the incoming Trump administration will drop this rule.
Dave (DAVE), one of the first banks in the USA, started offering crypto-related services in the second half of 2023. The bank provided digital banking services, including free giro accounts and debit cards.
These developments suggest a promising future for the integration of cryptocurrencies into traditional banking services, with both American and European markets showing signs of growth. However, the role of regulatory frameworks, such as the SEC's SAB 121 accounting rule, remains a crucial factor in shaping this future.
