“A surge in customer interest” has motivated the financial giant Citigroup enter the world of crypto – after the bank said it was considering introducing crypto trading, custody and funding services.
Speak with The Financial Times, Itay Tuchman, Citigroup’s global foreign exchange chief, claimed the bank was not being made to get involved in cryptocurrency-related matters and was still “undecided whether it will offer cryptocurrency-related services to clients”.
Tuchman stated: “From our point of view, there are different options and we are considering where we can best serve customers. […] We shouldn’t do anything that is not safe and healthy. We’ll step in when we’re confident we can build something that will benefit customers and that regulators can support. […] I don’t have a FOMO because I believe that crypto will stay here and we are only at the beginning of the market. This is not a space race. There’s room for more than just a flag. “
It appears, however, that Citi is now realizing that the adoption of crypto has become inevitable for large banks, as Tuchman has admitted that his company has what he considers to be a “very fast” growing interest in Bitcoin (BTC) “across a broad spectrum of Clients, including large clients, has listed wealth managers. “
That interest has taken the form of “research” requests while some customers reportedly “wanted to trade a range of coins through the bank and fund cryptocurrency holdings deals.”
However, he has discounted what is known as a “prop trading effort”, in which banks trade on their own account.
The development follows a bullish BTC move Goldman Sachs, Which, Per Bloomberg is “penetrating deeper into the Bitcoin market” with an undeliverable forward offer – a derivative that is tied to the price of the BTC price and pays investors in fiat.
Max Minton, Goldman Sach’s leader in digital assets in the Asia Pacific region, was quoted as saying: “The institutional demand in this area continues to grow significantly. Working with partners like Cumberland will help us expand our capabilities. [The non-deliverable forwards option is] This paves the way for us to further develop our emerging cryptocurrency skills with cash handling. “
At 06:47 UTC, BTC is trading at USD 56,049 and is down 1.5% in one day, bringing weekly gains to less than 5%.