Banking on cryptocurrencies
Key takeaways
Is cryptocurrency here to stay?
The financial services industry is increasingly enthusiastic about cryptocurrency applications and the blockchain technology that underpins them — some estimate that around 30% of investment banks’ infrastructure costs could be stripped out by using blockchain.
Management and control
Driven by Europe, efforts have begun to develop a globally coordinated regulatory approach to crypto assets, improve levels of transparency, and establish new codes of conduct and standards for disclosure and reporting.
Should banks enter the crypto market?
How should financial institutions position themselves in this new environment where crypto is increasingly legitimate, and in what areas should a bank choose to play?
FAQ: Crypto, Regulation & Financial Services
How can cryptocurrencies improve financial inclusion?
Cryptocurrencies can enhance financial inclusion by enabling low‑cost, mobile‑based payments for individuals who have limited access to traditional banking services.
In regions where high fees and insufficient financial infrastructure create barriers, crypto allows users to send remittances and make payments using only a mobile phone and an internet connection. Adoption rates in countries such as South Africa and Kenya already demonstrate how crypto can act as a quasi‑banking system for marginalised populations.
For a deeper examination of the economic and social implications, download the full Thought Leadership report.
Why is the crypto market often described as volatile or a “Wild West”?
The crypto market is regarded as highly volatile due to extreme price swings, speculative demand, and the collapse of major crypto projects such as TerraUSD and Luna.
Regulators have labelled the sector a “Wild West” because rapid expansion, limited oversight, and high‑profile failures raise concerns about systemic risk. This instability has prompted global discussions on coordinated regulation, taxation, and transparency standards.
To explore volatility drivers and emerging regulatory frameworks, download the full report.
How should banks adapt to the rise of cryptocurrencies?
Banks should adapt by determining their strategic role along the crypto value chain and aligning their risk appetite with evolving regulations. Potential opportunities include custody services, crypto trading, tokenisation, or providing digital wallets - all of which require robust governance, compliance frameworks, and cybersecurity capabilities.
Institutions must also modernise their IT infrastructure to ensure blockchain connectivity, KYC/AML compliance, and resilience against emerging threats. Leading banks such as JPMorgan and Goldman Sachs are already developing or offering digital asset services.
For detailed operating models, download the full Thought Leadership report.
