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Author: Admin | 2025-04-27
Likely solicit greater interest in having a trusted intermediary provide custody services. Outside of simply safeguarding these assets, as different forms of cryptoassets take hold, banks and regulators should prepare for the offering of other cryptoasset-based financial offerings.Decentralized CryptoassetsGiven its unique monetary properties, including built-in durability, scarcity, fungibility, portability and divisibility, Bitcoin is quickly growing as a new store-of-value asset—similar to real estate or gold. The market for Bitcoin among individual investors has been growing for years. Recently, however, corporations have started adding Bitcoin to their balance sheets, some arguing that Bitcoin will help protect shareholder value from the effects of aggressive monetary policy around the world.MicroStrategy, a software and data analytics business, was among the first major companies to invest in Bitcoin and has been perhaps the most aggressive corporate purchaser of Bitcoin. After converting large portions of its cash treasury into Bitcoin in the summer of 2020 and a subsequent series of debt offerings to acquire more Bitcoin, MicroStrategy now holds approximately 122,478 Bitcoins on its balance sheet. [1] Technology corporations such as Square and Tesla have followed suit. Square, a mobile payments company founded by Jack Dorsey, bought $50 million worth of Bitcoin in 2020 and an additional $170 million worth of Bitcoin in 2021. [2] Dorsey and Square CFO Amrita Ahuja both cited Bitcoin’s potential as native currency of the internet as a reason for the company’s purchase. [3] Similarly, in January 2021, Tesla disclosed that it had acquired $1.5 billion in Bitcoin as a treasury management strategy. [4]This unique use case may spur demand for an entirely new suite of banking services similar to those offered for traditional currencies. Holders of Bitcoin and other cryptoassets may ask for crypto-based financial offerings such as customized exposure products, custody and trading solutions, credit lines, Bitcoin prime brokerage
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