"Major US Banks Discuss Expansion into Virtual Asset Business... Approaching Custody with Caution"

Major banks in the United States are intensifying internal discussions on entering the virtual asset (cryptocurrency) business, but observations indicate that their initial approach remains cautious.

On the 29th (local time), Reuters reported, citing multiple industry insiders, that "large US banks are internally reviewing pilot models for limited forms of virtual asset trading, custody, and partnerships." However, it is said that they remain wary of becoming the 'first movers' in the industry due to concerns about the burdens arising from changes in the regulatory environment.

Dario De Martino, an M&A partner at A&O Sherman, stated, "The current regulatory regime offers traditional financial institutions an opportunity to participate in virtual assets, but immunity is not guaranteed."

Additionally, some banks are showing a tendency to approach the market not through their own custody services, but by collaborating with existing virtual asset companies. The recent withdrawal of SEC's accounting guideline 'SAB-121' is also cited as a major background factor. This guideline had required banks to treat virtual assets they hold as liabilities on their balance sheets, and has been pointed to as one of the factors hindering entry into the custody business.

Gadi Chait, Investment Manager at Xapo, said, "The reasons traditional banks are slow to adopt cryptocurrencies are complexity, outdated infrastructure, and internal skepticism," but added, "However, the interest shown by large banks is a sign that the trend of institutional investor-centric digital asset adoption is likely to continue in the long term."