Barclays (Britain’s second-largest bank) Plans to Enter the Cryptocurrency Market

Image for post
Image for post

Barclays, Britain’s second-largest bank, is considering entering the cryptocurrency market. Earlier, the bank issued a report comparing cryptocurrencies to infectious diseases.

The bank has been conducting behind-the-scenes work for months, testing investors’ opinions on the proposed plan anonymously. Although the details of the plan have not yet been announced, it is believed that the bank is planning to launch a cryptocurrency trading platform.

According to Bloomberg, the bank has already conducted a preliminary feasibility study. Barkley spokesman Andrew Smith said that Barclays is committed to ensuring its customers are not excluded from the emerging cryptocurrency revolution. Smith said the bank is constantly monitoring the cryptocurrency market and discussing with customers the best way to enter the market.

Barclays has been active in the blockchain industry and has invested and collaborated with a number of blockchain startups. Like multinational financial companies, the ambivalence of cryptocurrency has not prevented the bank from recognizing the great potential of Blockchain technology.

Is the golden age of bitcoin already passed?

Tyrrosby, the head of investment banking, and Jes Staley, the chief executive, finally decided to set up a cryptocurrency trading unit. The nascent nature of the melancholy market and the attendant risks, coupled with regulatory compliance requirements, means that this plan may not be realized without the support of senior management.

According to a recent BTCManager report, the bank’s top experts believe that Bitcoin reached a peak of nearly US$20,000 in December 2017. Because of fears of missed opportunities, experts believe that the influx of traders into the market has increased the level of speculation.

The rise of large institutional investment in cryptocurrency transactions

Just recently, Börse Stuttgart, the second largest stock exchange in Germany, announced the launch of its Bitcoin trading application. If the news released by Barclays Bank proves to be true, then this is another example of large-scale institutional investment in the cryptocurrency market. For those who believe that the mainstream financial system is the next step in the development of the Bitcoin and cryptocurrency markets, this will be good news.

At present, apart from hedge funds participating in cryptocurrency transactions, mainstream finance only participates in Bitcoin futures products provided by CME and Cboe. According to independent research, it is estimated that 226 cryptocurrency funds are in operation, and total asset management is between US$3.5 billion and US$5 billion. In early 2017, there were only 37 such funds, many of which were added during the astonishing rise of Bitcoin in late 2017. In 2018, the government introduced many regulatory measures and imposed stricter supervision on the market. Even so, only nine of these funds have announced closures.

Author: Marko Vidrih @cryptomarks

Written by

Most writers waste tremendous words to say nothing. I’m not one of them.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store