Bank of America could ease its position on bitcoin.
Driving the news: Bank of America has approved trading in cash-settled bitcoin futures contracts for some clients, Coindesk’s Will Canny and Tanzeel Akhtar report.
Why is this important: It would be a change of tone from a bank that has historically moved away from the cryptocurrency industry.
Go back: “Currently, we do not lend against cryptocurrencies or do banking to companies primarily engaged in cryptocurrency or facilitating cryptocurrency trade and investment,” said the CEO of Bank of America, Brian Moynihan, to the Senate Banking Committee on May 21.
Inventory: Clients of brokerage houses sitting on the sidelines of crypto trading have had other options like fintech startups Coinbase and Robinhood.
Yes, but: “We continue to assess opportunities, risks and customer demand for cryptocurrency-related products and services,” Moynihan added in May. It was a sentiment shared by his peers at Citigroup and Wells Fargo.
- Last month, CNBC reported that Goldman Sachs was trading bitcoin futures with crypto firm Galaxy Digital.
What they say : “BofA getting started as the crypto market cools is an interesting note on the momentum behind bitcoin’s institutional moment,” Coindesk associate editor Zack Seward told Axios.
- “The fact that this is a futures game gives BofA clients the ability to bet in the market through thick and thin.”
The bottom line: From weather derivatives to bonds backed by David Bowie’s music, financial services companies have long been flexible in creating and delivering financial products in response to customer demand.
Go further: Cryptocurrency jokes get serious