A report by the American Bankers’ Association (ABA) advised banks to consider partnering with crypto exchanges based on the surging profitability of the industry and consumers’ interest.
“…banks are looking for opportunities to provide their customers access to these assets through their banking relationship. Customer interest is driving banks’ consideration of offering access to crypto products.” a section of the report read citing a study by NYDIG that shows that eight out of ten Bitcoin hodlers don’t mind transferring their tokens to a bank.
In a 20 page document, ABA categorized crypto assets into four sections namely: Cryptocurrencies, Stablecoins, central bank digital currencies, and non-fungible tokens (NFT). Decentralized Finance (DeFi) was acknowledged too.
The report offers a well-rounded summary of cryptocurrencies and highlights ten crypto use cases for financial institutions along with potential earning models and regulatory hiccups attached to each use case.
As reported by Forbes, the suggested use cases include store value, lending, custody/wallet provider, payments, exchange trading, broker-dealer, insurance, network utility, interest-bearing accounts, and asset management.
The American Bankers’ Association in its report also projects what to expect from the crypto space in the next 6 to 18 months. Adding that updates will be made to the document as the industry evolves.
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