Wells Fargo has made the move to introduce a cryptocurrency strategy to its wealthy clients. The bank has been looking for a way to professionally manage the digital currency since May when it announced plans to offer an actively managed Bitcoin investment service for its high-net-worth clients. It has now formally registered a cryptocurrency passive trust with the Securities and Exchange Commission. But, the firm has not yet outlined any plans to start trading the new digital asset.
While the company has accepted bitcoin transactions since December, the company says that it is not yet ready to invest in other cryptocurrencies. The bank hopes that regulatory clarity will lead to better investments in the future. While the company doesn’t subscribe to the “too late” argument, it is a smart move to make this move. And it’s a good sign that Wells Fargo is taking the lead, as they’re not the only big bank attempting to participate in the growing crypto scene.
As a financial institution, Wells Fargo has been a Bitcoin-accepting bank since December of last year, although it may not have been facing the financial consequences until now. But they are introducing a professional-managed crypto-currency fund to their customers, which will be geared toward high-net-worth investors. This move is a big step forward for the company, and it could lead to more investment opportunities in the future.
It may also be too early to draw any conclusions. But it’s worth watching the situation. It could be a short-term ban, or a permanent solution. The bank has a long-term strategy to bolster the crypto space and remain competitive. But whether or not the bank will be able to make this work is too early to be certain. Until the ban is lifted, it remains to be seen.
While the cryptocurrencies themselves are still a novel concept, it is still unclear how well they will perform. However, the company is working to launch a trial service that will allow people to use cryptos. The company plans to launch the service in 2020, but there’s no set timeline for when the company will be able to fully adopt the technology. Aside from introducing the service, the bank is testing it between Canadian and U.S. accounts, and may then add more currencies after a trial period.
Despite its new role in the crypto space, the bank isn’t the only company to get in on the act. Several banks have already launched their own digital currency solutions. JP Morgan Chase has announced that it will launch a blockchain-based currency backed by U.S. dollars. The bank will also support litecoin, ether, and cardano, and have miners and validators distributed around the world.