Some of the finance industry’s best-known names are building their own digital markets trading platforms, betting that fund managers will prefer familiar and trusted brands to the opaque cryptocurrency exchanges that dominate the sector.
Standard Chartered, Nomura and Charles Schwab are among the traditional financial institutions that are creating or backing new, separate crypto companies, including exchange and custody groups that can handle digital tokens such as bitcoin and ether.
The established companies are wagering that fund managers are still keen on trading crypto, even after prices crashed last year and a string of companies — including crypto exchange FTX and lenders Celsius and Voyager — failed.
“Lots of institutional players are testing different bits of activity to test the waters, build a bit of experience in the market but also . . . making sure they have an option for further growth avenues,” said Alexandre Birry, chief analytical officer for financial services at S&P Global Ratings.
Standard Chartered, Nomura and Charles Schwab are among the traditional financial institutions that are creating or backing new, separate crypto companies, including exchange and custody groups that can handle digital tokens such as bitcoin and ether.