Wells Fargo is the next major banking and financial services company to join the crypto-asset offering. The news comes after last week’s report that Switzerland-based UBS Group AG was looking to take a similar move.
Wells Fargo’s change of perspective
Just a few years ago, Wells Fargo banned credit card crypto fees. This week, the company’s wealth and investment division expects to roll out an actively managed crypto strategy. The investment offer will be available to qualified customers as early as next month.
The largest US-based banks continue to adapt to the changing landscape. Goldman Sachs, Citi, Morgan Stanley, and others have continued discussions about taking advantage of or actively participating in new crypto offerings. Wells Fargo has nearly $ 2 billion worth of assets.
In the same way as with the aforementioned announcement by UBS Group AG, the first investment offers for the company’s high-quality customer accounts are expected to be available.
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What is the word
In an interview with Business Insider, the Wells Fargo Investment Institute shared some of the company’s prospects with Darrell Cronk. Cronk announced that the investment strategy is expected to be available in mid-June and has been in the works for months. Cronk added, “We believe that the cryptocurrency space has just reached an evolution and maturation in its development that will enable it to be now a profitable investable good.” Cronk described crypto as an “alternative investment” that required thorough due diligence required.
The statement comes just six months after company officials found the bank was not recommending crypto to customers because it lacks the infrastructure to support the asset on customer accounts. A broader crypto success appears to have changed the mood for the company, as Wells Fargo has reportedly been working on a “professionally managed solution” for several months and is now finalizing the manager research and due diligence process.
Wells Fargo has warmed up to the idea of having crypto assets as part of a diversified portfolio | Source: BTC-USD on TradingView.com
I’m looking forward to
However, Cronk was still cautious, especially around customer regulations and protection. “There is a whole element of consumer protection and regulations that need to evolve as the landscape changes. So we’re not risk-free, we just believe there might be a viable investable option for customers who show interest, ”said Cronk. With that mindset, Cronk added that the company does not currently see digital assets as their own “asset class with a strategic allocation to each portfolio”, but that qualified investors have a “good diversifier for portfolio holdings.”
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