US Banking Giant Wells Fargo To Offer Crypto Services to Wealthy Clients
The fourth-largest bank in the United States is embracing crypto.
Wells Fargo announced this month that it will offer select clients an actively managed cryptocurrency strategy.
In a report titled The Investment Rationale for Cryptocurrencies, the Wells Fargo Investment Institute (WFII) says cryptocurrencies have evolved into a viable investment class.
“WFII believes that crypto-currencies have gained stability and viability as assets, but the risks lead us to favor investment exposure only for qualified investors, and even then through professionally managed funds.”
The bank’s report offers detailed insight into their reasoning, citing more mainstream usage in transactions and the pandemic’s role in “fast-tracking the digital economy.”
The report also mentions the increasingly friendly regulatory waters for banks wishing to custody digital assets for their clients.
“Banks received regulatory permission to custody cryptocurrencies, and the investment industry and regulators took additional steps to extend a legal and oversight framework that should help solidify cryptocurrencies as investable assets.”
Wells Fargo follows the example of several big banks in recent months, including Morgan Stanley, JPMorgan and Bank of New York Mellon Corporation allowing clients hold, transfer and issue digital assets.
News of Wells Fargo’s support for digital assets comes as the crypto market takes a plunge and struggles to reclaim a $2 trillion market cap.
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