🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Wall Street Giants Unveil Crypto Plans To Boost Institutional Adoption

Published 12/05/2024, 18:39
Updated 12/05/2024, 18:45
Wall Street Giants Unveil Crypto Plans To Boost Institutional Adoption
C
-
JPM
-
MA
-
WFC
-
V
-
BLK
-

Coin Edition -

  • Renowned financial institutions set to test novel blockchain-based regulated settlement network.
  • Identified institutions for the test include JP Morgan, Citi, Wells Fargo, Visa, and Mastercard.
  • Polygon’s Colin Butler considers the developing trend a signal for mass crypto adoption.

Renowned financial institutions, including JPMorgan, Citi, U.S. Bank, and Wells Fargo, are among the organizations that will test an upcoming regulated settlement network involving the common settlement of tokenized assets on shared-ledger technology. According to reports, payment giants Visa and Mastercard and global financial messaging service Swift will also participate in the testing process.

The innovation comes amid growing concerns over the struggles of the U.S. dollar, the universal settlement currency. In a recent report, the billionaire Tesla CEO, Elon Musk, warned that the greenback could collapse. Hence, efforts by the identified Wall Street giants to explore asset tokenization, an idea that Citi analysts predict could become a $5 trillion market by 2030.

Colin Butler, global head of institutional capital at Polygon, considers the developing trend a signal for mass crypto adoption. Butler described it as the five-yard-line for mass institutional adoption. He noted that adding the latest test is “incrementally more important” than earlier trials like JPMorgan’s onyx private blockchain and unified ledger, a concept introduced by the Bank of International Settlements (BIS) last year.

Rendering his opinion on the ongoing development, Raj Dhamodharan, executive vice president for blockchain and crypto at Mastercard, highlighted the importance of significant partnerships in blockchain exploration. According to him, it will be critical for public and private organizations to partner closely to explore how to apply blockchain solutions to solve real-world pain points and improve efficiencies.

Dhamodharan’s comment supports the statement by Larry Fink, BlackRock’s chief executive, who described asset tokenization as “the next generation for markets.” Fink’s statement aligns with his company’s recent announcement that it has entered the second stage in its plan for a crypto-based revolution in financial markets. BlackRock noted the revolution would involve launching a tokenized private equity fund.

The post Wall Street Giants Unveil Crypto Plans To Boost Institutional Adoption appeared first on Coin Edition.

Read more on Coin Edition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.