That Traditional Finance or TradFi firms and VCs have entered Crypto has been evident since the last cycle.
It might be that now, with the situation in the market, many financial institutions appear to be sceptical and lukewarm to provide funding. But, they are always positioning for the long term.
What happened with FTX will lead to more regulations that will be aggressive and far reaching. Customer protection will be the announced goal. Well, they had the chance to protect customers as the FBI and SEC knew and had been investigating FTX for the past year but without taking any measures. The real goal is financial control through CBDC.
To put this into perspective, legacy financial institutions have been setting the alarm against crypto and a number of them were supposedly leaving the space all together.
Jamie Dimon, the CEO of JP Morgan Chase, the largest of the four biggest US banks, had attacked crypto in the past claiming that it had no value. Despite all the Bitcoin being a ponzi scheme rhetoric, JP Morgan Chase recently registered its own Crypto Wallet trademark with the United States Patents and Trademark Office. The old saying stands true; don't focus on what they are saying but on what they are doing.
The Crypto / Digital asset wallet includes; Virtual currency transfer, Crypto payment processing, Virtual checking account. Through that JP customers will be able to buy and trade supported cryptocurrencies, settle payments and make purchases with crypto, and down the road lead to CBDC. JP Morgan is building in the Blockchain to take a chunk of the market. During their latest intervention in the CeFi / DeFi debate, through a news bulletin JP Morgan claimed that the latest collapses in the crypto ecosystem were happening due to centralized players and not because of decentralized protocols.
At the same time big US banks along with the US government are preparing for the next step, the introduction of CBDC in the country. This will happen sooner or later. The US President, Joe Biden, stipulated that modern technology could make the "digital dollar" a real possibility.
Originally posted on my Leofinance blog.
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