Institutional Benefits of Holding Digital Currencies
Cryptocurrency and digital assets are now more important than ever before – for most forward-thinking institutions looking to stay ahead in their industry, holding digital assets is an attractive option. “I see bitcoin as the world reserve asset, whereas I see the dollar as the world reserve currency,” MicroStrategy CEO Michael Saylor said recently on CoinDesk TV.
“You would rather spend the currency because it’s losing value, and save the asset as it’s gaining value.”
Many of the world’s biggest companies like MicroStrategy and Tesla are diversifying their balance sheets away from low to negative-yielding fiat or traditional investments.
Align with the list of companies already publicly acknowledging this move and discover the key reasons behind Microstrategy’s decision to invest their treasury in bitcoin in our recent summary.
Whilst they may still be in something of a foundation stage due to their infancy, it’s hard to discredit digital currencies as a solid treasury strategy for the future. Inflationary global currencies make it hard to generate return, and with bitcoin outperforming every asset class for the past four years, and more and more financial institutions, including JPMorgan, Goldman Sachs, Citi and Deloitte recommend holding digital assets.
To facilitate your activity in the cryptocurrency market, it’s important to ensure that you have the right partners and platforms by your side; with many traditional banks distancing themselves from handling digital currencies, it’s likely that you’ll need to turn to challenger banks to assist you through this process. Here at BCB Group, we’re passionate about giving institutions the tools, platforms, and security that they need to operate with confidence. We have created an industry-leading payments infrastructure and network that supports major crypto and fiat currencies, ensuring you’re able to buy, sell, and hold your assets. For more information on the services that we provide here at BCB Group, you can check out our insights page, or alternatively get in touch with our expert team to chat about the solutions we provide and how they might be able to benefit your company as you enter the digital currency space. BCB Treasury is the first ‘all-in-one’ solution empowering corporate treasuries to include crypto assets.
What Types of Digital Currencies can Businesses Hold?
The first step on the cryptocurrency journey is to gain a better understanding of digital assets on a deeper level, then begin to delve further into the reasons why you would want to invest, trade, and report on them. Once you have this information, you’ll be in the best possible position to make educated decisions regarding your position within the cryptocurrency markets. If you’re wondering what the top types of digital currencies to invest in are, here are a few of the most commonly transacted coins and tokens that we handle here at BCB Group:
Ethereum – like Bitcoin, Ethereum is a blockchain network. However, Ethereum was designed to be programmable, which means it wasn’t designed for use as a currency, but to allow its users to create, publish, monetize, and use applications. As the Ethereum platform’s native currency, Ether (ETH) was developed to be used as a means of payment.
USD Coin (USDC) stablecoin (see our stablecoin insights for further insight) runs on Etherum and several other blockchains. The rate is pegged to the U.S. dollar. This means that USDC is worth one U.S. dollar — the guaranteed 1:1 ratio makes it a stable form of exchange and a low-risk investment for most institutional investors.
Here are a few of the reasons why working with BCB Group may help you to increase your efficiency and strategy when operating in the cryptocurrency markets:
BCB Group is one of the industry’s most forward-thinking companies – we’re partnered with a number of leading entities in the industry from regulators to the largest exchanges, which gives our clients access to everything they need to feel safe and secure when conducting their activity
Ben started off his career as a military officer before moving into banking as an emerging markets equity sales trader at a large investment bank. He was top-rated, with over seven years’ experience before he moved into the digital assets world at the start of 2018.