By Hassan Mehmood (Saudi Arabia)
Citi Bank is a USA-based international investment banking company. The enterprise boasts over $2.26 trillion AUM, and its minimum net worth requirement is set at $25 million. The enterprise also facilitates industry professionals with financial planning, fixed income management, securities analysis, and real estate investments. The bank has about 54 million active account users worldwide.
After getting a significant amount of persuasion from its client base, the US financial service has finally attracted to Bitcoin. The management of the enterprise has expressed a keen interest in exploring options to provide their customers with Bitcoin exposure. On the other hand, Fidelity Investments has started to work on a new crypto project to provide more banks with the infrastructure and support for cryptocurrency banking. The former cynical stance of banking firms towards cryptocurrency is become more dilute as time passes.
In an interview with Financial Times, Itay Tuchman, Head of Global Foreign Exchange at Citi Bank, told media that despite the visible volatility of the cryptocurrencies and Bitcoin, the enterprise has decided to rule in favor of Bitcoin adoption. Tuchman added that Bitcoin had become the favorite tool for hedge funds and asset managers during the current economic situation. However, he also highlighted that the bank is not planning to make an immediate switch but rather wait for the right time.
Also read:In the 4th quarter of last year, a leaked report from Citi Bank made the news. The report contained an observation from a senior analyst of the bank that had made predictions that Bitcoin could reach $318K by the end of 2021. Tom Fitzpatrick, Global Head of CitiFX Technicals, remarked that Bitcoin could experience massive gains that would be rife with painful drops. He also added that Bitcoin is a better trading commodity for long-term trading. Meanwhile, the bank seems to have some idea about their provision of Bitcoin as Tuchman claimed that clients should not expect a prop-trading system.
More Banks are Signing up for Bitcoin
The biggest banks in the United States have started to adopt Bitcoin one after another. The list includes names like (Bank of New York) BNY Mellon, Morgan Stanley, Goldman Sachs, JP Morgan Chase, and many others. The subsidiary of Stone Ridge Asset Management, NYDIG, is also planning to help the bank get faster access to Bitcoin.
New York Digital Investment Group LLC or NYDIG is working on a project that would allow banks to hold, buy, sell, and trade Bitcoin with their existing accounts. Patrick Sells, Head of the Bank Solutions at NYDIG, told the media that many smaller banks have already signed up for the program while others are conducting regular meetings to find a suitable way in.
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