Due to the increasing demand for cryptocurrency transactions, Citigroup Inc. has decided to offer to trade in Bitcoin (BTC) futures to its biggest clients.
The only thing stopping the investment banking company is regulatory approval. Once through, Citigroup will start trading Bitcoin (BTC) futures on the Chicago Mercantile Exchange (CME).
The cryptocurrency space is gaining popularity among Citigroup’s clients. As a result, the banking firm has been monitoring developments in the field. Citigroup is taking calculated steps given the amount unanswered factors such as supervisory expectations and regulatory frameworks.
The company also wants to test the waters first by understanding the digital asset space and blockchain technology. By studying their client’s demand and interests, regulatory and technological development, it will be easier to have a concrete strategy.
To start things, Citigroup will first focus on futures for its institutional clients as their operations happen under reliable regulatory frameworks.
According to some reports, Citigroup was planning to provide services related to cryptocurrency in May 2021. Many of Citigroup’s clients, including large asset managers, showed interest in wealth management through Bitcoin (BTC). By June, the company had created a Digital Assets group, as part of its wealth management unit.
Bitcoin (BTC) values are soaring. In June, the cryptocurrency crossed the $50,000 mark. This is despite the Chinese Government’s attempt to clamp down on their domestic mining companies in the beginning of 2021. Corporations and individual investors are still converting over to the cryptocurrency trade.
Another investment banking giant, JPMorgan Chase & Co, gave its clients open access to cryptocurrency from July this year.