Traditional financial institutions are starting to enter the cryptocurrency space as more customers start to demand crypto-related services.
Commonwealth Bank has become the first major Australian bank to offer cryptocurrency services to its customers. This is according to the bank’s statement earlier today as it looks to provide more services to its clients.
According to the bank, its customers can use the CommonBank App to buy, sell and hold crypto assets directly. The bank said it has partnered with leading blockchain analysis firm, Chainalysis and one of the world’s largest regulated crypto exchanges and custodians, Gemini, on this latest offering.
The partnerships have allowed the Commonwealth Bank to design a crypto exchange and custody service that would allow its customers to enjoy the new services via its mobile app. The pilot is set to commence in the coming weeks, and the bank intends to roll out more cryptocurrency-focused features over the coming months.
The launch of the cryptocurrency services by the bank is due to the huge demand from its customers. The Commonwealth Bank admitted that a large percentage of its customers want access to crypto assets as an investment class. Most of its customers are already buying, selling and holding crypto assets through a variety of crypto exchanges.
This latest development doesn’t come as a surprise as more traditional banks and other financial institutions are entering the cryptocurrency space. Since the start of the year, numerous traditional banks have launched crypto-related products and services to their customers.
In the United States, some of the leading banks such as Morgan Stanley, JPMorgan, Goldman Sachs, Citi Bank and BNY Mellon have all launched numerous cryptocurrency services to their clients. Most of the banks allow their private clients to gain exposure to Bitcoin via numerous investment vehicles.
Cryptocurrency adoption will continue to increase over the coming years as more people enter the market. The total cryptocurrency market cap is now close to the $2.8 trillion mark. As the market continues to grow, the market cap would grow bigger.
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