British firm, BCB Group, to help corporations invest in Bitcoin

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British crypto firm BCB Group launched a new service that is dedicated to assisting corporations that want to add Bitcoin and other digital assets to their treasuries. 

BCB Group Founder and CEO Oliver von Landsberg-Sadie believed that many companies that are interested to venture into the digital asset space as “unprecedented levels of central bank money supply” are devaluing their reserve currencies. He further noted how MicroStrategy’s Michael Saylor and Tesla’s Elon Musk, “are tuned into” Bitcoin and have “led the way for the Bitcoin-treasury demand, which BCB is well equipped to meet.”

BCB Treasury enables access to treasury management for companies that wish to allocate “part or all of their capital” into Bitcoin or other crypto assets. The service also allows treasury executives to enter, hold, manage, grow and report on a Bitcoin-focused strategy.

The dual-regulated institution offers accounts and payments processing for institutions that include Bitstamp, Coinbase, Galaxy, and Kraken, among fiat and cryptocurrencies. 

On 29 January, BCB Group announced that its core operating subsidiary, BCB Payments secured its API license from UK regulator, Financial Conduct Authority.

Recently, crypto exchange Coinbase said that it was “ready to serve” companies that are looking to crypto to “hedge or diversify their excess cash.” In a blog post, Coinbase’s Head of Institutional Sales, Brett Tejpaul disclosed that the firm has been helping corporations diversify their investments with cryptocurrencies.

Reports stated that the exchange was also behind Tesla’s recent Bitcoin investment, however, both parties have not made an official comment about the same. But on 1 December 2020, Coinbase said that leading Bitcoin investor, MicroStrategy chose the US-based firm as its primary execution partner for its $425 million purchase of Bitcoin last year.

Bitcoin has been in the spotlight of late as its recent price highs have drawn in more investors from across the globe. Commenting on Bitcoin’s growth and its significance, Adam Traidman, CEO of crypto wallet company BRD noted,

“What’s really interesting about cryptocurrency and Bitcoin is that it’s a very global type of movement”

Drawing parallels between the world’s largest cryptocurrency and that of traditional finance, Traidman highlighted that “Wall Street goes to sleep every night, but Bitcoin and other cryptocurrency markets continue to trade.”

However, despite Bitcoin’s acceptance from the world of mainstream finance, Traidman pointed out that while mainstream adoption of crypto is on the rise, there is also a lot of trepidation from investors around new asset classes such as cryptocurrency.

“We’re used to dealing with banks, we’re not used to dealing with mobile apps to invest”, comments Traidman who says that putting tens of thousands of dollars into an investment through your phone is not something that has historically been well accepted. He went on to highlight the challenges the crypto industry had had to face with regard to adoption and stated that,

“Part of the challenge for the cryptocurrency industry has been making investing in Bitcoin easy, accessible, and to sort of engender a feeling of trust and safety for these new investors.”

At a price of over $55,000, Bitcoin may be the most mainstream cryptocurrency, but even buying a small percentage of it appears expensive to the average retail investor.

This may not be the case for institutions, and as evidenced from the past year they have continued to express an avid interest in cryptocurrencies as a growing asset class.

Morgan Stanley’s Chief Global Strategist Ruchir Sharma recently published a report on why crypto is coming out of the shadows and highlighted that,

“We see fundamental reasons to believe that— regardless of where the price of Bitcoin goes next— cryptocurrencies are here to stay as a serious asset class.”

As more institutions offer custody and support for cryptocurrency, market sentiment around these digital assets will continue to thrive – even if Bitcoin is too expensive for the average retail investor.

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