Traditional Banks Take Heed: The Future of Money Is DigitalEverest Group

By Reeves Simmons.
Updated Jul 13, 2021

DALLAS (PRWEB) July 13, 2021 - Everest Group reports the year 2020 and Q1 2021 produced a seven-fold surge in retail and institutional investments in cryptocurrencies and related crypto assets, driven by increased investor demand, pandemic-fostered digitalization and clarity in regulatory tenets. The cryptocurrency market hovered around US$2 trillion through April 2021 and is projected to reach US$24 trillion by 2027. This growth is forcing traditional banks to realize that digital assets are the future of money. Banks need to invest early to capture high-growth pockets and investor mindshare in this market, according to Everest Group.

Several players within the banking and financial services (BFS) industry are already active in the growing crypto market, which is a thriving ecosystem comprising several digital assets including privacy coins, stablecoins, cryptocurrencies, security tokens, utility tokens and Central Bank Digital Currencies (CBDC). IT service providers are developing in-house solutions to help financial institutions use Blockchain-as-a-Service (BaaS) for their digital asset needs. FinTechs are at the forefront of innovating products and services but operate in an unregulated environment, posing high risks for investors. Larger investments have increased the safety, security, and accountability requirements to invest in these assets. Thus, there is an urgent need for regulatory bodies globally to bring in practical frameworks and regulations for digital asset trade at the earliest.

These findings and more are shared in Everest Groups recently published Deconstructing the Digital Assets Revolution What Financial Institutions Can Learn from the Meteoric Rise of Coinbase. This State of the Market Report analyzes the rise of retail and institutional investments in digital assets, including cryptocurrencies, other crypto assets and crypto technology. The report examines crypto financial service offerings and their impact on the BFS market. Everest Group also recommends a transformation plan for traditional banking systems through a hybrid model, which seamlessly integrates value-added processes and operational functions for both traditional and digital assets being serviced on a digital-native platform.

Key trends and imperatives in the digital assets revolution:

***Download a complimentary abstract of the report here.***

About Everest Group Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com