The Bank of America (BoA) has filed for a patent to offer a crypto custody system to store cryptocurrency on behalf of institutions. The efforts by many major institutions to offer products around cryptocurrencies can be seen to aid adoption in the US and around the world. As more products are created around Bitcoin, further regulation is required to offer these to clients and institutions. This prompts more regulation and can lead to more financial products around Bitcoin. Regulations is needed for many institutions to buy Bitcoin securely.
The custody service is described as a vault system for the safe storage of digital assets. The system will allow BoA to provide a platform for finance sector clients who have possibly made a large bitcoin purchase, to allocate the large amounts of crypto without the concerns of security and regulation. The primary function of the crypto vault is to allow institutions and enterprises to safely store large volumes of cryptocurrencies whilst still being able to transact daily.
The introduction of institutional products around crypto is a step towards the improvement of the Infrastructure needed for over-the-counter (OTC) and institutional services. Institutions are more willing to buy crypto through existing custodian solutions and creating a means for this is sure to draw in new capital.
A huge number of investors are anticipating the debut of the first Bitcoin Exchange Traded Fund (ETF). The introduction of a Bitcoin ETF could induce a bull run of crypto buying. The hope is that custodian services and other financial products for Bitcoin will prompt the requirements needed for the emergence of a Bitcoin ETF.
As more and more financial products enter the market, we could potentially see more interest in buying and selling Bitcoin.
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