There are 3 main developments that convinced many of the top banks to start providing cryptocurrency, and primarily Bitcoin-related services: Seeing cryptocurrency exchanges with a fraction of their staff become substantially more profitable or valuable than many banks. This started as early as 2018, when Binance, the leading exchange at the time, recorded $54M more profit than Deutsche Bank, with just 200 vs 100k employees. More recently, Coinbase's valuation was higher than Goldman Sachs, with just 4% of their employees. Countless requests from their clients to provide Bitcoin solutions. A change in regulations in 2020 that allows banks to offer crypto custody solutions.

https://app.blockdata.tech/blog/general/banks-investing-blockchain-companies