Special banking services wandering to capture an accelerated encryption train

In 2019, when ABS became the first private bank to block the world of encryption financing and organized banking services for customer service who were seeking to custody digital assets and a set of associated services, we expected a ride full of events. We got one – the short -term evaluation company has been unusual Crypto, creating and destroying hundreds of billions of virtual value over the past five years.

However, like our customers, we have been focusing on the long -term properties of this exciting space. We have learned to distinguish between noise and the general trend of travel, which witnessed a steady increase in organizational and administrative participation and cavity in the number of millions of coded millions – dangerous funds that require dangerous services.

However, at the present time, there is a major transformation worth inviting, because it is a change in the game. In the past few months, “Got” institutions have become a wave of money after this direction. This is no less than the beginning of the end of the chapter of encryption and traditional worlds.

Institutions intervene

The starting weapon of this wave of professional funds was somewhat clear, the United States elections with the incoming administration followed a progressive approach to encryption – even recently announced the inclusion of the encryption currency in the Federal Reserve.

It is difficult to determine the accurate institutional investment in cryptocurrencies since November. The numbers are not publicly revealed, but the combination of government initiatives and private sector approvals, all indicate a large and growing institutional interest in the encryption space. Interestingly is this Crypto’s investment funds are now the third largest asset In the ETF manufacturing with a value of $ 15 trillion behind shares and bonds only and before precious metals, commodities, real estate boxes and multiple asset boxes. The retail investors can buy the traded investment funds, of course, but this type of momentum to put the assets category in this position only one year after the approval of the first traded investment funds on the encoding, requires a dangerous institutional weight.

Certainly, our own experience with institutional customers on the plane, new trading patterns, products and services required, all indicate the same trend: they are services that bring the characteristics of institutions related to traditional markets that grow dramatically. For example, the new FX platform that enables Bitcoin, Ethereum and Solana is rapidly and easily traded on the same application as Swiss France, USD and EURO has witnessed a significant increase in demand. Such as services that provide products and loans derived against the assets and encryption services that are developed towards asset managers who are looking to prepare tools such as the calculations of encryption or managed certificates.

It is a wide range of offers, but what they share is that they enable the traits that institutions require from traditional market services. An environmental system with facilities to support complex strategies with diversification, ease of liquidity and liquidity.

New convergence encryption/traditional world

This emerging ecosystem/traditional ecosystem will transform tectonic plates in the world of financial services. Since the encryption space, which was previously formed and led by the involvement of retail sale with investors who often pride themselves to work in a parallel financial world or even reject, is now formed (like that) through institutional participation.

It is not difficult to call some results: the convergence of traditional encryption space will accelerate quickly. Foundations will not only require this, but institutions that have skills and the ability to create the ecosystem required by these existing players are more motivated/offered to do so more than ever.

Crypto will also become safer even though the “Wild West” sides will not disappear completely any time soon. Those who want to predict about new and very volatile currencies or even themes will remain there, as well as those who want to benefit from them. But it seems likely that institutional participation will bring a great focus on currencies that are reliable, and in fact, accelerate the process of creating a different category of cryptocurrencies where currencies work from the first level to prove their workplace and join Bitcoin as a value -recognized reserve. It may still be possible to invest in a speculative or VC method to try to capture the upcoming emerging bitcoin, but the differences between currencies that are worthy of dangerous transactions and the rest will become much more clear.

Opportunity for private banking services

We realize that all private banks will have 5 years in building a brand building and complex capabilities in the area of ​​digital assets. However, with Heinis Cryotation Wealth Report 2024 (Covered by PBI hereSaying that there are 172,300 people all over the world carrying more than a million dollars of encryption assets, an increase of 95 % over the previous year, and that the number of owners of millions of bitcoin also increased to 85,400, an increase of 111 %; It seems reasonable to assume that our industry was at the forefront of this interaction between encryption and traditional financial worlds so far.

Collectively, as bank bankers, we must have a valuable start and we must work to benefit from it while writing – a plot of advanced coding offers in HNW, and will conclude the space of private banking and wealth services management to benefit from this important and sophisticated market and new institutional investment in the Crypto area. But it would be wise to move quickly, because the other thing in institutional investors who need to serve is that this request and the financial chance he creates will not pass for a long time.

Rani Gabban, Managing Director of Al Arabiya Bank, Switzerland.