Posted 2 weeks ago | by Catoshi Nakamoto
Bank of America has launched Bitcoin futures trading one week after launching a research team in digital assets.
BOA the second largest bank in the U.S. per Bank Rate has now announced that it will launch cash-settled Bitcoin futures. The futures contract will settle in U.S. dollars instead of Bitcoin itself, according to two sources as Coindesk reported.
Coindesk further noted that the trading is live with some clients while others are being onboarded.
“BOA is now allowing some clients to access the crypto market, one of the sources said. Some clients are setting up to trade bitcoin futures, which are cash settled, and one or two may have already gone live,” Coindesk wrote.
Bank Of America’s support of Bitcoin futures is its first jump into the crypto market. This dive into digital assets will be through CME futures contracts according to a source that spoke with Coindesk.
As Bitboy Crypto previously reported, BoA also launched a new research team dedicated to researching the digital assets space last week.
According to a Bloomberg report, Alkesh Shah from Bank of America’s data and innovation strategy group will be leading the team looking into digital assets as per a leaked memo shared with the news organization. Shah along with Mamta Jain and Andrew Moss of Bank of America Merrill Lynch’s digital innovation group will report to Michael Maras, who currently oversees the bank’s global currencies and commodities research team.
It’s worth mentioning, Goldman Sachs relaunched its own cryptocurrency trading platform in June, granting its clients exposure to Bitcoin futures through its trading partners like Galaxy Digital, CNBC reported.
A number of investment banks have begun offering or are in the process of enabling the sales of cryptocurrency to their clients. As Bitboy Crypto reported, under a deal through NYDIG and another service called Fiserv, it’s estimated 70% of U.S. banks can now offer their clients the ability to purchase digital assets with the focus on Bitcoin.
Last year, former U.S. Office of the Comptroller of the Currency (OCC) Brian Brooks who is now the head of Binance U.S. gave the ability for banks to custody cryptocurrency for their clients. However, many banks are choosing to use NYDIG for this process rather than go through the requirements to do so safely. Brooks on his way out also gave approval to crypto custodian Anchorage to receive a national trust charter making it the first digital asset bank in the country, as Bitboy Crypto reported.
Bitcoin is currently trading at [FIAT: $32,042.57] UP +2.2% in the last 24 hours according to Coingecko at the time of this report.