Financial institutions are increasingly becoming interested in crypto after the industry’s stellar performance. While the crypto market crashed mid-May, investors remained bullish on cryptocurrencies, forcing mainstream banks to forge ways to keep their clients satisfied.
In its Q2 shareholder letter, the San Francisco-based exchange Coinbase unveiled that PNC, the fifth-largest commercial bank in the US, has jumped on the crypto bandwagon. Coinbase has partnered with PNC alongside other industry leaders including Elon Musk, SpaceX, Tesla, Third Point LLC, and WisdomTree Investments.
While Coinbase did not delve into details, a source had previously disclosed that the Pittsburgh-based national bank intends to launch a crypto initiative soon. This service would offer PNC seamless access to cryptocurrency investments for its customers.
The news of this launch could have a big impact on the crypto market. However, this project is only the starting point in PNC’s planned journey which includes digital assets and blockchain technology, showing the bank’s strong commitment to the burgeoning asset class.
PNC started searching for a Crypto Product Manager a few months ago. The bank put up the job post, noting that the incumbent would scale operations for its crypto investment capabilities. Additionally, the person that secures the position would be in charge of managing all operational aspects that relate to the bank’s crypto projects.
More Banks Set to Embrace Crypto
While PNC might be the largest bank yet to embrace crypto, hundreds more are set to join the crypto sector, according to crypto custody firm NYDIG. Reportedly, the company teamed up with Fidelity National Information Services in May to make it easier for US banks to offer Bitcoin services this year.
At the time, NYDIG’s Head of Bank Solutions, Patrick Sells, said hundreds of banks had already enrolled in the program. He added that the firm was in discussions with some of the biggest banks in the US. However, these claims came just before the crash that saw BTC plunge from it’s all-time high of $64,863.10 to trade as low as $28,893.62.
Since then, the crypto market has not seen a particular influx of US banks. Nonetheless, with the crypto market rallying again, nothing can be ruled out considering mainstream organizations such as Tesla and MicroStrategy warmed up to crypto.