Today’s edition of bitcoin in brief features stories that display the rapidity at which financial institutions backing crypto businesses are benefiting from the market.
Major banks in the US are skeptical about crypto businesses. In that align, smaller banks have decided to stand out for all American bitcoin users and businesses, and they are making a fortune from it.
A very good example is the New York-based Metropolitan Bank which was able to build up deposits from crypto businesses without building new branches and tripled its yearly fee income in 2017 mainly from crypto transactions. San Diego-based Silvergate Bank also almost doubled its assets to $1.9 billion in 2017, with the help of the 250 cryptocurrency-related businesses the company serves.
Alan Lane, Silvergate Chief executive, told the Wall Street Journal that: “At what point as a banker do you pull your head out of the sand? Every banker should be learning about the technology.”
It was unveiled in London on Wednesday by CEO of the post-trade services provider owned by Deutsche Börse Clearstream, in the person of Jeffrey Tessler, that Deutsche Börse AG, operator of the Frankfurt Stock Exchange that they are actively examining the options at hand for launching cryptocurrency derivatives. This announcement was made at an event organized by the Association for Financial Markets in Europe.
Tessler, who is also a member of the group’s executive board, responsible for Clients, Products and Core Markets, explained that: “Before we move forward with anything like Bitcoin we want to make sure we understand the underlying transaction which isn’t the easiest thing to do.” “We are deep at work with it,” however, “not at the same stage” [as the CME]. “We want to understand the volatility and make sure clients are in line and make sure regulators are in line.”