By Tatiana Bautzer and Hannah Lang
New York (Reuters) -Citigroup explores the supply of the stable stable guard and other services, a higher executive told Reuters, in another sign of changes in scanning policy in Washington, large financial companies are developing in the cryptocurrency sector.
The American bank is part of a handful of traditional institutions, including FISERV and BANK OF AMERICA, considering pushing in the stablecoins after the congress adopted a law opening the way to cryptographic tokens to become widely used for payments, the regulations and other services. Stablecoins are cryptocurrencies set for a fiduciary currency or another asset, generally the US dollar.
This law obliges stable issuers to have safe assets such as American treasury bills or money to support digital parts, creating opportunities so that traditional childcare banks ensure the safety and administration of assets.
“Providing aging services for high -quality assets that support Stablescoins is the first option we are examining,” said Biswarup Chatterjee, partnership leader and innovation of Citigroup’s services division, in an interview. Citi’s activity activity, which includes the treasure, species management, payments and other services to large companies, remains a basic unit for the bank, which has undergone a major restructuring.
A McKinsey study estimates that around $ 250 billion in students have been issued so far, but are mainly used to settle cryptocurrency transactions. While Citigroup said last month that he planned to issue his own stablecoin, the bank had not previously discussed its larger digital asset plans.
Citi also explores childcare services for digital assets that retreat investment products related to crypto. For example, many asset managers have launched ETFs that follow the Bitcoin cash price since the Securities and Exchange Commission authorized these products last year.
The largest ETF Bitcoin, Ishares Bitcoin Trust in BlackRock, has around $ 90 billion in market capitalization. “There must be custody of the equivalent quantity of digital currency to support these ETF,” said Chatterjee.
Currently, Crypto Exchange Coinbase dominates this company. In a statement, a spokesperson for Coinbase said that the company serves a guardian for more than 80% of FNB Crypto issuers.
Citi also explores the use of stablecoins to speed up payments, which in the traditional banking system generally take several days or more.
Citi currently offers “tokenized” US dollars payments that use a blockchain network to transfer dollars between accounts in New York, London and Hong Kong 24 hours a day. It develops services to allow customers to send stablescoins between accounts or convert them into dollars to make instant payments, and talks to customers Chatterjee.
