With their reputation, expertise, and rich experience in the financial industry, traditional Wall Street firms are planning to take over the crypto business.
According to the latest information from Wall Street, traditional financial firms, including Standard Chartered, Nomura and Charles Schwab, are busy building and planning to fund crypto custody and exchange platforms such as Binance, Coinbase…
This move implicitly confirms that regulators are still interested in the crypto sector, despite the recession in 2022 and a series of crypto scandals.
Previously, 6 US financial giants (Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital and Virtu Financial) joined hands to build the EDX Markets (EDXM) cryptocurrency exchange in September 2022. , with the goal of being the first exchange to address the underlying need for digital asset trading by enabling secure and compliant trading of digital assets through trusted intermediaries.
However, since then, there has not been any more information about EDX Markets.
However, in a survey of 250 asset managers conducted by EY-Parthenon, half of the respondents said they would consider switching to a traditional company/exchange backed by a company. Additionally, 90% of respondents trust traditional financial teams to act as custodians of crypto assets.
Traditional companies are trying to build a transparent platform
The collapse and misconduct of many crypto companies have eroded investor confidence. Therefore, traditional financial companies are trying their best to break into this nascent but potential field, with transparent operations. At the same time, affirming its position in the market.
Currently, BNY Mellon and Fidelity already operate separate crypto custody divisions, and Nasdaq is waiting for the regulator to give the green light for its service.
In addition, Jez Mohideen, CEO of Laser Digital, a cryptocurrency trading and VC firm owned by Nomura, said some crypto exchanges “do not offer good execution.” best or best price”. Therefore, the participation of traditional companies in cryptocurrencies will create “transparency, with the most optimal price”.
Red covers Wall Street
Closing the last trading session of May, red covered the entire US stock market in New York City, when all three main indexes dropped. In particular, the S&P 500 and Nasdaq indexes lost about 0.6% of their value. With the Dow Jones, for the whole month of May, the index fell 3.4%, or about 1,150 points, while the Nasdaq gained nearly 6% and the S&P 500 gained about 0.2%.
In addition, on the morning of June 1, the US House of Representatives officially passed a bill to raise the public debt ceiling. According to experts, the issue of the public debt ceiling is one of the main factors that dominate the psychology of investors in most of the trading time of May.