234 Interactions, 4 today
The investment bank is willing to give cryptocurrency a shot after claiming that it has recently progressed and developed.
Wells Fargo Investment Institute revealed that it would shortly launch an investment programme for its affluent customers, with president Darren Cronk announcing that the cryptocurrency space has now reached maturity.
Wells Fargo Wealth & Investment Management’s research division, which manages about $2 trillion in cash, is testing and onboarding the blockchain investment programme for qualified investors. After the final stages of due diligence, the app is scheduled to be unveiled by mid-June.
“We think the cryptocurrency space has just kind of hit an evolution and maturation of its development that allows it now to be a viable investable asset,” said Cronk in an interview with Business Insider.
Wells Fargo Investment Institute was reluctant to declare its involvement in the cryptocurrency sector as recently as December 2020, with its head of real estate management, John LaForge, telling a media conference that the institute had no interest in crypto.
Cronk said that there was already risk, citing a $2 trillion global market cap — which has since shrunk to $1.3 trillion at the time of writing as Bitcoin (BTC) and the blockchain space encounter one of the worst bloodbaths in modern memory.
Cronk was thinking about customer protections and rules as he prepared for the product launch, noticing the still-evolving world ahead.
“There’s a whole slew of consumer protections and regulations that still need to evolve to keep up with the changing landscape. So we’re not without risk; we just believe there might be a viable investable alternative for those clients who express an interest,” Cronk explained.