U.S. Financial Institutions Facilitated $201 Billion in Cryptocurrency Client Investments During 2023
In the world of finance, the landscape of crypto custody services is evolving rapidly.
Significant growth has been observed in American banks offering crypto services to their clients. However, the Americas remain largely absent from the crypto custody space, due to the Securities and Exchange Commission's (SEC) SAB 121 accounting rule.
Across the Atlantic, Europe has seen a surge in assets under custody. In the second half of 2023, assets under custody grew by an impressive 49% to reach €5.5 billion ($5.8bn). This growth was consistent with the patterns of the previous period.
Interestingly, 94% of this crypto custody was for spot crypto, rather than tokenized assets or Exchange-Traded Products (ETPs).
The Basel Committee on Banking Supervision published Basel III monitoring statistics for December 2023, providing insights into crypto-asset exposures. However, no specific information about the launch of US Bitcoin ETFs was available in the text.
In a potential game-changer, the incoming Trump administration is expected to drop the SAB 121 accounting rule, which could pave the way for American banks to enter the crypto custody space.
As we move forward, deeper insights and legislative updates are available for subscribers. The future of crypto custody services in the Americas remains uncertain, but the trend in Europe suggests a promising outlook for the industry.
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