Thoughts, stories and ideas.

Banks are increasing their exposition to crypto

Banks are being extremely nice and productive about crypto recently, and in an interesting variety of ways.

Crédit Suisse is using Ethereum to tokenize a ski resort. Swiss law allows tokenized securities to trade on a blockchain with the same legal standing as traditional assets. Tokens will be available for purchase through a private sale that will help the Alaïa resort raise funds.

Societé Générale wants DAI to accept on-chain bond tokens issued by the bank as collateral in Dai loans. Dai is Maker’s stablecoin, a cryptocurrency with a fixed price of $1. To keep that price, Dai is collateralized with different cryptocurrencies, from bitcoins and ether to other stablecoins. Everyone can lock these cryptocurrencies at Maker’s smart contracts to mint Dai. Interestingly enough, Societé Générale presented their proposal using Maker’s official governance forums. Well played, SocGen.

US Bank, the fifth-largest bank in America, is launching its own custody service in collaboration with crypto native company NYDIG. The service could be an on-ramp for institutional investors, who still expect more safety signs from the industry.

Bank of America has been incredibly enthusiastic in a recent report. Bank of America Global Research's latest report, Digital Assets Primer, shows excitement about crypto in ways that prove their commitment. DeFi, NFTs, Layer 1 and Layer 2 scalability solutions, smart contract platforms, stablecoins... They still don’t understand Loot, but to be honest, we neither.