Traditional financial giants actively layout the encryption field, stablecoins and tokenization become new focal points

A leading financial services company in the United States is accelerating its expansion into the cryptocurrency space. The company's CEO recently stated that it will launch Bitcoin and Ethereum trading services to provide customers with a more comprehensive range of investment options and directly compete with a well-known cryptocurrency platform.

As a traditional financial giant managing over $10 trillion in assets, the company also plans to launch a stablecoin and research the field of tokenization based on customer demand. As the regulatory environment in the United States becomes clearer, this company is changing the competitive landscape of the cryptocurrency market.

Launch Bitcoin and Ethereum trading services, targeting competitor markets

The company's CEO recently revealed in a media interview that they are preparing to enter the Bitcoin trading sector, which could make them a direct competitor to a well-known encryption platform.

"Our clients are already investing in cryptocurrencies. In fact, the crypto ETPs they hold account for over 20% of the entire industry." Nevertheless, the CEO pointed out that the current cryptocurrency holdings only make up about $25 billion of "the total client assets of $10.8 trillion, so it is still relatively small."

He stated that the company "expects to launch Bitcoin and Ethereum trading services soon, allowing customers to access these assets." This service could become an important growth driver for the company.

"Many clients have stated that 98% of their wealth is in our accounts, and they might keep 1% or 2% with some digital native companies to hold encryption, but they actually want to bring those assets back because they trust us," the CEO said. "They want these assets to be managed alongside other assets, so we believe that when we launch these products to the market, we should see actual growth."

When asked whether they would directly compete with a certain well-known encryption platform, the CEO stated clearly: "Absolutely. If they are buying cryptocurrencies there, we would love to see them bring those cryptocurrencies back here."

In recent years, accelerating layout in the cryptocurrency field

This American multinational financial services company currently offers banking, commercial banking, investment, and related services, including consulting and wealth management advisory services, aimed at both retail and institutional clients. It is one of the largest banks in the United States by assets. As of December 31, 2024, the company managed client assets of $10.1 trillion, with active brokerage accounts reaching 36.5 million, workplace retirement plan participation accounts of 5.4 million, and bank accounts totaling 2 million.

In recent years, the company has continued to focus on the field of encryption currency. In July 2022, it launched the first cryptocurrency-related ETF. The fund aims to track a proprietary index launched by the company's asset management department, with an annual operating expense ratio of 0.30%. However, the index does not directly track or invest in cryptocurrencies, but instead uses artificial intelligence technology and systematic models to identify, select, and measure companies related to the cryptocurrency theme.

Currently, the ETF has become the company's largest encryption product, with total net assets nearing 160 million USD as of July 23.

The current CEO has also expressed support for cryptocurrencies. Before taking office in November 2024, he stated that the company plans to launch spot cryptocurrency trading services. "Cryptocurrencies have indeed attracted a lot of attention, and many people have made quite a bit of money from them," he said in a media interview.

Plans to launch a stablecoin, carefully researching tokenization demand

According to reports, during a recent summer conference call, the CEO also stated that the company will launch a stablecoin. However, he holds a cautious wait-and-see attitude towards tokenization, believing it is difficult to see what problems it can solve for the public stock market.

The CEO categorizes cryptocurrencies into three types: Bitcoin as an independent category; tokens needed for blockchain transactions, which he considers valuable; and the third category is meme coins, which the company does not plan to offer.

Regarding stablecoins, the CEO stated: "We have already collaborated with major banks and alliances to discuss how to bring stablecoins to the market. At the same time, we are also exploring our own paths, and we will make the decision that is most beneficial for our clients."

Currently, the company's interest income on customer cash balances constitutes an important part of the company's revenue. For example, in the fiscal quarter ending March 31, 2025, the company's interest income reached $2.7 billion, accounting for about 50% of total revenue of $5.6 billion.

When it comes to tokenization, the CEO did not completely dismiss the concept, but rather said: "We will see how this trend evolves and in which asset classes it becomes more mainstream. I think, for the public stock market, we must ask ourselves, what problem does tokenization solve?"

Despite the advantage of 24/7 trading offered by tokenization, he pointed out that the company currently provides 24/5 trading, with only 1% of trades occurring during off-hours. Furthermore, public stock markets are very transparent, highly liquid, and efficient, and he questioned whether tokenization could provide these advantages. He also expressed concerns about malicious actors in the anti-money laundering (AML) and tokenization space.

The CEO stated that the company is exploring tokenization, and if there is demand from customers, this service will be offered. However, he also mentioned that if the entire market moves in this direction, he hopes to ensure that tokenization is at least not lower than the current level in terms of transparency, liquidity, and cost. "For any new innovation, we hope it expands this field, rather than takes us backward."