Member Exclusive, Payments

What does the involvement of legacy financial institutions mean for crypto?

  • Established financial players are starting to accept cryptocurrencies as a legitimate asset class.
  • Does such institutional involvement contradict the basic thesis of crypto?
close

Email a Friend

What does the involvement of legacy financial institutions mean for crypto?

Welcome back to Payments, our bi-weekly newsletter about all things payments — from blockchain to BNPL to B2B. It’s inspired by our payments coverage as well as the top stories from around the payments space. Subscribe here.

As crypto continues to boom, legacy financial institutions are taking note, with American brick-and-mortar banks increasingly looking to offer crypto custodial accounts. U.S. Bank, the fifth-largest retail bank in the country, is the latest to offer crypto custody services to fund managers. Other major banks including BNY Mellon, State Street and Northern Trust have similarly announced plans to custody digital assets.

The trend indicates that established players are starting to accept cryptocurrencies as a legitimate asset class. While this may be seen as an encouraging step towards widespread crypto adoption, it begs the question of whether such institutional involvement contradicts the basic thesis of cryptocurrencies – with banks acting as custodians, is crypto’s decentralization under threat?

Our top stories

First-ever bitcoin ETF BITO launches
For the first time, investors can invest in bitcoin via an ETF, without having to buy the cryptocurrency on a crypto exchange. The ETF is intended to give exposure to investors who don’t want to go through the hassle of buying bitcoin directly.

With traditional banks acting as custodians, is crypto’s decentralized nature under threat?
Over $200 billion worth of bitcoins have been lost so far. Do people need a better way to secure their digital assets? “Not your keys, not your coins,” say crypto traditionalists, arguing the space is meant to be free of banks, with a fundamental ‘one’s own bank’ philosophy.


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “What does the involvement of legacy financial institutions mean for crypto?”

Payments, Power of Payments Podcast

Power of Payments Ep. 14: JPMorgan vs Stripe and Block, CFPB is coming for BNPL, and is LTO a viable BNPL alternative?

  • This week, we talk about JPMorgan’s acquisition of payments firms Renovite, and the CFPB’s recent report on BNPL firms, which suggests that regulation is coming for the sector.
  • We also discuss why lease-to-own, which is another type of installment payment option, has been gaining popularity in recent months.
Ismail Umar | September 23, 2022
Payments

Takeaways from Tearsheet’s Power of Payments conference last week

  • Last week, Tearsheet hosted its inaugural T-POP Conference, focused on payments.
  • Here are the major challenges and opportunities we zeroed in on at the event as we plan for the future of payments.
Zachary Miller | September 21, 2022
Member Exclusive, Payments

‘It’s new branding to what is a very classic industry’: Ramp’s Eric Glyman on B2B BNPL, and how their new offering is different

  • What's the secret sauce behind Ramp's doubling valuation and revenue growth amid a fintech downturn?
  • Eric Glyman, co-founder and CEO of Ramp, spills the beans on his company strategies and what's in the offing.
Sara Khairi | September 13, 2022
Member Exclusive, Payments

Payments Briefing: Does lease-to-own provide a “recession-proof” alternative to BNPL?

  • This week, we explore lease-to-own, an installment payment option that has been gaining popularity in recent months.
  • We also discuss SMBs' increasing reliance on cross-border payments, and the steps that providers can take to serve them better.
Ismail Umar | September 09, 2022
Payments, Power of Payments Podcast

Power of Payments Ep. 13: ‘You need to have a good answer to the question, how do you get to profitability?’ – Rapyd’s Eric Rosenthal

  • Eric Rosenthal, vice president of corporate development, strategy and partnerships at Rapyd, joins host Ismail Umar on this week’s podcast.
  • He talks about how Rapyd caters to businesses of different sizes including major firms like Uber, what American companies can learn from payments firms in Latin America, Asia, and Europe, and how startups in the space should try to deal with the current downturn.
Ismail Umar | September 09, 2022
More Articles