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What Banks Should Consider Before Diving Back Into Digital Assets

Published

6 месяцев ago

19 марта, 2025

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2025 will be the year banks jump back into digital assets, reversing years of caution due to a challenging regulatory and market environment. Following the withdrawal of SAB 121 and new guidance from a key federal banking regulator, banks are now back in the race to develop crypto strategies to service their clients and stay competitive.

What we are seeing now is renewed interest from banks across the board — from credit unions and community banks to midsize and regional players to Wall Street giants. What is at stake for banks are existing and prospective client relationships as they compete for market share among retail and institutional participants looking to engage in digital assets. Banks that lead the way will be able to differentiate their products and create capital-efficient revenue streams.

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For reasons both cultural and technological, many banks may end up either licensing custody solutions to use in-house, or partnering with a crypto-native sub-custodian. One of the most important decisions a bank has to make is who they choose as a custody partner — a critical question as cybersecurity incidents continue to draw headlines.

From security and regulatory status to time-to-market, what should banks be considering as they dive back into digital assets?

Time-to-market and regulatory status

One of the first things any bank should consider is how their approach will impact time-to-market strategy and competitive positioning. For banks, working with a regulated custodian is more than just a box-checking exercise.

Partnering with a crypto custodian that has built a comprehensive risk management and compliance infrastructure — from AML and KYC controls to information security policies — can give banks a streamlined go-to-market strategy. Banks and their crypto partners should not only speak the same language, but be regulated on the same footing.

Crypto partners need to demonstrate that they meet — and exceed — bank regulatory expectations. Doing so can help to get regulators and senior bank leadership on board, in addition to creating peace-of-mind among clients.

Safety and resiliency

Banks getting into crypto want to do so quickly, but also safely in order to maintain the hard-earned trust of their clients. That is why banks often put security front-and-center in the search for a crypto custodian.

As a baseline, any crypto custody partner should take an end-to-end approach to security, involving multiple lines of defense for every transaction. The custody partner should also have in place robust technology to help ensure every transaction reflects client intent. Keeping assets legally separated from those of other clients and the firm can help to mitigate risk.

Finally, custody solutions should meet the stringent operational resiliency standards that banks are held to, so they can scale alongside the bank’s digital asset business.

Integrated solution

Banks should also consider ease of integration into existing systems, as well as the ability to support future product and revenue streams. Integrating crypto custody into core banking systems can help to optimize revenue opportunities, operational efficiency and time-to-market.

Secure custody is really the foundation for additional offerings — from collateralized lending to trading to staking. As banks look to meet end-client demand for full participation in the ecosystem, working with a custodian that offers an integrated suite of services is key.

This year will be a turning point for crypto adoption across traditional banks of all sizes, with crypto-native custody solutions providing a clear path for banks to stay competitive and meet client demand.

Business

Crypto Trading Firm Keyrock Buys Luxembourg’s Turing Capital in Asset Management Push

Published

16 часов ago

16 сентября, 2025

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Crypto trading firm Keyrock said it’s expanding into asset and wealth management by acquiring Turing Capital, a Luxembourg-registered alternative investment fund manager.

The deal, announced on Tuesday, marks the launch of Keyrock’s Asset and Wealth Management division, a new business unit dedicated to institutional clients and private investors.

Keyrock, founded in Brussels, Belgium and best known for its work in market making, options and OTC trading, said it will fold Turing Capital’s investment strategies and Luxembourg fund management structure into its wider platform. The division will be led by Turing Capital co-founder Jorge Schnura, who joins Keyrock’s executive committee as president of the unit.

The company said the expansion will allow it to provide services across the full lifecycle of digital assets, from liquidity provision to long-term investment strategies. «In the near future, all assets will live onchain,» Schnura said, noting that the merger positions the group to capture opportunities as traditional financial products migrate to blockchain rails.

Keyrock has also applied for regulatory approval under the EU’s crypto framework MiCA through a filing with Liechtenstein’s financial regulator. If approved, the firm plans to offer portfolio management and advisory services, aiming to compete directly with traditional asset managers as well as crypto-native players.

«Today’s launch sets the stage for our longer-term ambition: bringing asset management on-chain in a way that truly meets institutional standards,» Keyrock CSO Juan David Mendieta said in a statement.

Business

Crypto Trading Firm Keyrock Buys Luxembourg’s Turing Capital in Asset Management Push

Published

16 часов ago

16 сентября, 2025

admin

Crypto trading firm Keyrock said it’s expanding into asset and wealth management by acquiring Turing Capital, a Luxembourg-registered alternative investment fund manager.

The deal, announced on Tuesday, marks the launch of Keyrock’s Asset and Wealth Management division, a new business unit dedicated to institutional clients and private investors.

Business

Gemini Shares Slide 6%, Extending Post-IPO Slump to 24%

Published

16 часов ago

16 сентября, 2025

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Gemini Space Station (GEMI), the crypto exchange founded by Cameron and Tyler Winklevoss, has seen its shares tumble by more than 20% since listing on the Nasdaq last Friday.

The stock is down around 6% on Tuesday, trading at $30.42, and has dropped nearly 24% over the past week. The sharp decline follows an initial surge after the company raised $425 million in its IPO, pricing shares at $28 and valuing the firm at $3.3 billion before trading began.

On its first day, GEMI spiked to $45.89 before closing at $32 — a 14% premium to its offer price. But since hitting that high, shares have plunged more than 34%, erasing most of the early enthusiasm from public market investors.

The broader crypto equity market has remained more stable. Coinbase (COIN), the largest U.S. crypto exchange, is flat over the past week. Robinhood (HOOD), which derives part of its revenue from crypto, is down 3%. Token issuer Circle (CRCL), on the other hand, is up 13% over the same period.

Part of the pressure on Gemini’s stock may stem from its financials. The company posted a $283 million net loss in the first half of 2025, following a $159 million loss in all of 2024. Despite raising fresh capital, the numbers suggest the business is still far from turning a profit.

Compass Point analyst Ed Engel noted that GEMI is currently trading at 26 times its annualized first-half revenue. That multiple — often used to gauge whether a stock is expensive — means investors are paying 26 dollars for every dollar the company is expected to generate in sales this year. For a loss-making company in a volatile sector, that’s a steep price, and could be fueling investor skepticism.