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Wall Street Giants Go Full DeFi: Traditional Banks Make Risky Crypto Plunge

Wall Street Giants Go Full DeFi: Traditional Banks Make Risky Crypto Plunge

Author:
CoinTurk
Published:
2025-05-08 02:31:48
16
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Banks Dive into the Crypto Market: Unprecedented Developments Shake Financial Industry

Goldman Sachs and JPMorgan just flipped the script—launching crypto custody services while quietly hedging with ’blockchain innovation’ press releases. The suits finally realized their 0.01% yield savings accounts can’t compete with DeFi APYs.

Behind the scenes: Banks are scrambling to tokenize everything from bonds to private equity, desperate to stay relevant. Meanwhile, their compliance departments are popping Xanax like candy.

The irony? These same institutions that called Bitcoin ’a fraud’ five years ago are now building trading desks for Shiba Inu derivatives. Nothing moves faster than Wall Street chasing double-digit returns—except maybe their backpedaling.

New Powers Granted by the Directive

According to the OCC’s recent announcement, banks are now authorized to delegate cryptocurrency transactions to third-party service providers. This shift enables them to manage the technical infrastructure investments through outsourcing, allowing credit institutions to organize cryptocurrency trading for their customers flexibly. Previously, banks were required to engage in separate consultations with state officials before initiating cryptocurrency operations. This obligation is no longer necessary, and institutions are now only required to comply with specified security protocols.

Security and Collaboration Conditions

The OCC mandates that all cryptocurrency transactions adhere to existing security standards. Independent experts must approve infrastructure and software security audits, and banks are obliged to submit regular reports to demonstrate operational soundness. Industry players believe this newfound flexibility will drive competition. Specialized service providers are also seeking to form new collaborations with banks, gradually eroding the barriers between traditional banking and the world of cryptocurrencies.

Transactions previously conducted solely through decentralized platforms can now occur under the supervision and assurance of banks. This evolution is expected to enhance customer satisfaction while tightening risk management practices.

You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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