American financial institutions facilitated a staggering $201 billion worth of cryptocurrency transactions for their clients in the year 2023.
The Basel Committee on Banking Supervision (BCBS) published its December 2023 statistics, offering insights into the global landscape of crypto custody. However, the report falls short of providing information on the growth of crypto custody in regions outside of the Americas and Europe.
In the December data, a significant shift towards spot crypto custody was evident, with 94% of custody being for spot crypto rather than tokenized assets or Exchange-Traded Products (ETPs). This trend was particularly noticeable in the United States and Europe.
In the United States, the data shows continued growth in American banks providing crypto services to clients. This growth is largely attributed to the incoming Trump administration's plans to drop the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin 121 (SAB 121) accounting rule. The rescission of SAB 121 has allowed U.S. Bank (U.S. Bancorp) to resume and expand its bitcoin custody service for institutional clients, including support for Bitcoin ETFs, after a multi-year pause.
The lifting of the SAB 121 rule is expected to significantly increase U.S. Bancorp's involvement in crypto custody services, potentially bridging the gap between the Americas and the rest of the world in the crypto custody space, which has been largely dominated by Europe.
In Europe, assets under custody in the second half of 2023 grew by 49% to €5.5 billion ($5.8bn). This growth outpaced the growth in the Americas, indicating a strong interest in crypto custody services in Europe.
However, the BCBS statistics do not detail the impact of the potential removal of the SAB 121 accounting rule on the crypto custody space. Nor do they provide information on the specific American banks offering crypto services.
In conclusion, the December 2023 BCBS statistics offer a glimpse into the global crypto custody landscape, showing a shift towards spot crypto custody and significant growth in the United States. The potential removal of the SAB 121 accounting rule could further revolutionise the crypto custody space, particularly in the Americas.
Read also:
- Peptide YY (PYY): Exploring its Role in Appetite Suppression, Intestinal Health, and Cognitive Links
- Toddler Health: Rotavirus Signs, Origins, and Potential Complications
- Digestive issues and heart discomfort: Root causes and associated health conditions
- House Infernos: Deadly Hazards Surpassing the Flames
