Yes, you read the title right! BNY Mellon invests in a crypto startup? Yes, but what I am more interested in is the 2nd part. 1 Bitcoin is now more than 1 KG of gold. A solid reply to many who thought Bitcoin couldn’t replace gold. Well, I wouldn’t say that has happened yet, but very soon, it will be. And when it does (coughs* pff pff), I will go on Twitter and share my joy. Why will anyone prefer having 1kg of gold that they need to store in a locker to keep it safe when they could keep it on their smartphone wallet? I don’t know! Do you?
— Documenting Bitcoin 📄 (@DocumentingBTC) March 20, 2021
BNY Mellon invests in a crypto startup
As Morgan Stanley acquires the largest crypto exchange of Korea Bithumb, BNY Mellon also invests in a crypto startup. They are also not staying behind anyone and are keeping pace with the latest developments in the crypto world. After all, BNY Mellon did became the first major bank of America to offer crypto services. The bank invested in FireBlocks, a startup that builds tools for the secure storage and transfer of various cryptocurrencies. The bank will use the assets of the startup to help their business grow through their latest service. In Feb, they said that they would take custody of digital assets on behalf of their investors.
The latest investment of the bank in Fireblocks is a part of a major investment round they are conducting. In total, the startup raised $133 million from various funds like Coature Managment LLC, venture-capitalist firms Ribbit Capital and others. Just one thing to note is that BNY didn’t disclose its investment amount.
Increasing interest in Bitcoin and altcoin
The rising prices of Bitcoin and other cryptocurrencies are the depictions of the growing public and institutional interest in them. In 2021, the price of Bitcoin has already doubled. And the $1.5 billion Tesla investment, along with the investments from smaller companies like Microstrategy, Square, Meitu and others. Many funds that invest in Bitcoin has also been created, and banks have also started to deal in Bitcoin.
Reports suggest that the volatility of Bitcoin is actually going time as more people buy into the asset. We will also very soon see Visa and Mastercard enabling Bitcoin purchases and finally allow us to use cryptocurrencies in a way they were always intended to. People are still viewing it as an investment, but in the long term, it could be a curreny that everyone uses. Even Citibank said that Bitcoin could become the currency for international trade every soon.
And as we are seeing more banks diving into cryptocurrencies directly and indirectly, very soon, Bitcoin could topple the dollar. This is just the beginning of cryptocurreny.
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