Institutional investors in Bitcoin (Top 5 banks)

Institutions are now investing in Bitcoin although some years back, some of them have doubts, and some publicly declared cryptocurrencies and bitcoin as fraud or speculative bubble. However, the story is changing as some of these major institutions are now at the forefront of investing in crypto especially Bitcoin. In this post, we will consider the top 5 bank investors in Bitcoin.

DBS

DBS is one of the largest banks in Singapore and Southeast Asia and it has officially announced the launch of a bitcoin service. DBS will launch a digital exchange that will allow crypto trading. DBS is one of the institutions that frowned at Bitcoin and was never in support. In 2017, DBS called bitcoin a Ponzi scheme.

This digital exchange will be limited to just four major fiat currencies and four major cryptocurrencies. The fiat currencies are US Dollar, Singapore Dollar, Japanese Yen, and the Hong Kong Dollar. The cryptocurrencies are Bitcoin, Ether, XRP, and Bitcoin Cash.

DBS will retain a 90% stake while the Singapore Stock Exchange will have the remaining 10%. DBS group chief executive, Piyush Gupta said in a media briefing that “For Singapore to become even more competitive as a global financial hub, we have to prepare ourselves to welcome the mainstream adoption of digital assets and currency trading.”

Hauck & Aufhauser

Hauck & Aufhauser, one of Germany’s oldest banks, is set to launch its own cryptocurrency investment fund in January 2021 to invest in bitcoin and other digital assets. Hauck & Aufhauser will collaborate with a Berlin-based fintech company, Kapilendo and they plan to target institutional investors and semi-institutional investors to invest in bitcoin and other cryptocurrencies.

BBVA

BBVA is the second-largest bank in Spain and it is one of the first banking institutions to invest in Bitcoin. BBVA invested in Coinbase, a digital currency exchange that allows the buying and selling of cryptocurrencies such as bitcoin. BBVA participated in Coinbase’s $75m investment funding round to learn more about cryptocurrency. This is what the executive director of BBVA has to say about this: “We think having an investment can help us understand what is going to happen rather than reading about it in the news.” According to a report from Coindesk, BBVA may soon be starting its own cryptocurrency trading platform.

USAA

USAA is a top-rated bank opened to active and retired US military and their eligible family members. USAA together with BBVA participated in the $75m investment funding round. USAA also allows its members to connect with their Coinbase account to view their balance. Members can view their balance on the mobile app or directly from the website.

China Merchant Bank

China Merchant bank is the first shareholding commercial bank wholly owned by corporate legal entities in China and it was founded in 1987. China Merchant bank invested in BitPim which is one of the oldest and most used bitcoin wallet providers in China. Although the amount that the bank invested in BitPie is unknown it will make a significant contribution to the adoption of cryptocurrency in China. 

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