Wells Fargo will provide institutional clients with access to cryptocurrencies

The American bank Wells Fargo intends to provide its institutional clients with access to cryptocurrencies to diversify their investment portfolio, warning of the attendant risks.

Wells Fargo Investment Institute President Darrell Cronk said the cryptocurrency space has “matured” and evolved to the point where digital currencies can become a competitive investment asset. Kronk said the bank has been working on a special solution for several months that will allow institutional clients to enter the cryptocurrency market. Now the development of the service is at the final stage, which includes comprehensive audits.

Kronk called cryptocurrencies an alternative investment rather than a distinct asset class. According to him, cryptocurrencies can be a good diversifier of an investment portfolio, but at the same time they are associated with many risks. Therefore, Wells Fargo plans to provide an opportunity to invest in cryptocurrencies only to accredited investors with an annual income of more than $ 200,000 or a net capital of $ 1 million. Such restrictions are necessary to protect the funds and interests of investors in the event of new regulations, technical problems or various difficulties associated with storage of cryptocurrencies.

“The cryptocurrency industry is constantly changing, so customer protection measures and regulation must also adapt to the changing landscape. Despite the various risks, cryptocurrencies can be a viable investment option if people show such interest in them, ”said Kronk.

Given the growing demand for cryptocurrencies, many banks are becoming less conservative about them. So, in March, Goldman Sachs announced its readiness to open clients indirect access to bitcoin through bonds. Morgan Stanley later provided clients with the option to invest in bitcoin through two cryptocurrency funds.