I always know when interest in digital assets rises because everyone from my family, friends and colleagues to the postman is asking me questions about how I can get involved.
You are probably wondering; but why now? Bitcoin has been around since 2009. What’s so different this time? Well, the difference is that regulators are gradually drawing attention and weighing themselves up, giving fintechs, corporations, banks and others the guard rails within which to operate.
Bitcoin, cryptocurrency, and tokenization are words that grab the attention and ear of a wide variety of people. The past six months have looked very similar to 2017, with seemingly daily headlines about digital assets, their gigantic increases in market capitalization, and the surge in new use cases like non-fungible tokens (NFTs). We’re not just here to talk about the hype, however. We are here to examine how your business can leverage digital assets and what advances have been made over the past four years that lead us to believe that the time is right.
We see a steady increase in the infrastructure surrounding digital assets – the technology matures; The regulatory tailwind is increasing and demand from institutional customers is growing. The current shift will have a profound impact, especially for financial institutions. Here’s what underpins it and why.
What is the current impact of digital currencies?
The evolution of digital currencies; Whether it’s cryptocurrencies, stable coins (cryptocurrencies that tie their market value to an external reference like the dollar to gain price stability through collateralization) or central bank digital currencies (CBDC) could change the way we do Exchange value. With advantages such as reduced processing time and reduced risk as well as increased liquidity for all asset classes.
The acceptance of digital assets is increasing exponentially. Tokenization is alone expected to be worth it $ 24 trillion by 2027, a number equivalent to 10 percent of global GDP. Cryptocurrencies are also increasingly being adopted by institutions like Tesla and Square. These companies have invested $ 1.5 billion and $ 50 million in Bitcoin, respectively.
As for that Financial services Industry, J.P. Morgan, Citigroup, Wells Fargo and PNC are among the leading financial services institutions Blockchain enable their infrastructure to support a wide variety of digital assets. Only with 21 percent of the banks This is the best time for your company to redesign your infrastructure to take advantage of the market.
Why now? Why do digital assets get so much attention?
In the past, regulators lacked the clarity that had previously kept financial institutions from getting involved in digital assets. However, over the past year the rules have become clearer and the Office of the Currency Auditor (OCC) has issued three directives that benefit the adoption of digital assets. These three policies include Crypto Custody Services, Stablecoin Reserve Service, and Invision Technologies, which banks can connect to Blockchains as a validation node and enables them to trade stable coins on behalf of their customers. Next to the OCC Fed Chair Powell mentioned introducing a “digital dollar” as a high priority project and trying to get the public to join the initiative sometime this year.
We see a lot of traction here and look forward to driving the success of our customers on this path to digital assets. Our digital asset risk and regulation advisory services help individuals understand the space and move forward with adoption. Tokenization accelerators and technology advisory services are additional features we can use to support customers on their digital asset journey. Ultimately, our payments expertise will be paramount in building B2B and B2C payment solutions.
Use digital assets
By working together we will help financial institutions to create new forms of financing, to democratize the possibility of participating in the debt and equity markets, to reduce the delay in the settlement of securities and to generate greater liquidity for all asset classes.
Looking ahead, we see a world where digital and fiat currencies coexist, with a wide range of stable coins and cryptocurrencies, different tracks and solutions that meet different customer and payment needs.
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