When Your Enemies Become Your Friend

Big Banks To Custody Bitcoin & Crypto

Investors,

It was not too long ago when J.P. Morgan Chase CEO Jamie Dimon said that bitcoin is "worthless", has "no intrinsic value", and is essentially "fool's gold." Today, Dimon’s bank and many other US banks are permitted to custody bitcoin and crypto as per the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Federal Deposit Insurance Corporation (FDIC).

The permission for US banks to custody BTC and other cryptocurrencies, as outlined above has significant positive implications for BTC:

1. Increased Institutional Adoption: Allowing banks to custody Bitcoin legitimizes it as an asset class, encouraging institutional investors to participate. This will lead to greater demand, potentially driving up BTC's price.

2. Enhanced Security and Trust: Bank custody services are subject to strict regulatory oversight, offering secure storage solutions compared to some crypto exchanges. This could attract more conservative investors, especially those who do not want the responsibility of custodying their holdings.

Although I am a firm believer in “Not Your Keys, Not Your Coins,” the net result of banks holding keys will boost confidence in BTC as a store of value.

3. Mainstream Integration: Banks offering custody services will integrate BTC into traditional financial systems, making it easier for individuals and businesses to hold and transact in BTC through familiar banking channels.

4. Price Stability and Volatility: Increased institutional involvement and regulated custody could reduce BTC's price volatility over time by providing a more stable investor base who will set it and forget it.

5. Regulatory Clarity: The guidance from the OCC, Federal Reserve, and FDIC signals a clearer regulatory framework, reducing uncertainty for banks and investors. This could pave the way for further crypto-friendly policies, fostering BTC’s exponential growth.

6. Competition and Innovation: Banks entering the crypto custody space will compete with existing crypto custodians, potentially leading to improved services, lower fees, and innovative financial products tied to BTC, such as ETFs or lending programs.

Overall, this development is extremely positive for BTC’s adoption, price potential, and integration into the financial system. It will unleash trillions of dollars into BTC.

US banks, once skeptical of BTC who used to de-banked bitcoiners, are now embracing custody roles. This signals a transformative shift, which not only validates BTC’s value, but also ensures a bullish future that might have bitcoin at $1 million dollars per coin in the coming decade.