Following suit of Goldman Sachs and Thomas Reuters, Northern Trust Corporation is a 129-year-old Chicago-based company, counts as a big name in the institutional finance industry, looks to join crypto traders’ list.
It has begun developing a way to secure digital assets and inflate prices to make suitable offers to clients and serious buyers. But before it is ready to unload the crypto assets in to its customer base, it must ensure a safe understanding and grasp over the workings of its crypto assets.
The company has dedicated a task force to ensure no gray area or loopholes remain in the investment into the project. Their experimentation focuses on developing a community of buyers that are likely to rely solely on Northern Trust Corp. for their crypto needs. It is therefore dedicated in strengthening its base structure which is still in infancy currently.
The project is centered around making crypto safe, to sell and to purchase. The biggest challenge it faces is to charge lower fees than existing crypto custodians. Competitors in other terms. This will be a single most contemporary step by the service house. Northern Trust Corporation says:
And through it all, we continually laid a solid, forward-looking foundation on which future generations can continue growing and achieving greater.
Recently appointed, Cherecwich, said in an interview:
The fees right now the custodians are charging are pretty high, not the same fees that we get –- ultimately, I believe unsustainable, because it needs to be an efficient model,
According to the president of the Corporation Peter Cherecwich’s Medium Blog, cryptocurrency is a spectator sport (highly synonymous to gambling, but more sophisticated and educated than the rest.) He also believes that the unreliability surrounding digital assets is mainly because of governments do not approve them or pass positive verdicts on them as often as they should to speed up the growth. Also to make it as healthy as possible.
He also shared that the irregularity and uncertainty in the virtual asset marketing is because of a lack of regulation and careful speculation:
Supply levels vary significantly and trade is conducted on new unregulated and illiquid markets. We have also seen significant price volatility, little to no investor protection, and very inconsistent, diverse regulatory approaches around the world.
The Corporation believes that if crypto brings them no profits, it will at least teach them ‘a thing or two’ about the digital asset tech market. A realm open for utilization of endless opportunities, security innovation and risk aversion.
The Corporation also launched a series of papers to welcome the new era of tech and globalization for newbies and change resistant people. The papers serve as a crash course not only to be used by the public, but also for their own clarifications and a display of their understandings. The paper consists of all-things-crypto.
The paper also concludes:
Northern Trust is taking a cautious approach towards cryptocurrencies
given the current lack of asset class definition by regulators and
Despite accepting that the crypto world is laden with concerns and risks but Northern Trust believes that digital currencies:
With appropriate regulatory oversight, are likely to play a role in shaping future developments in our industry and we are actively working with industry associations to advocate and contribute to the development of policy and regulatory frameworks.
The Corporation is a big name in tax payer dollars. It is among the big fish in the finance pond. And for all cryptocurrencies in the market, yearning to be bought and moved, this will be a great catch.
As of June 30, 2018, Northern Trust Corporation had:
- $10.7 trillion in assets under custody/administration
- $8.1 trillion in assets under custody
- $1.1 trillion in assets under management
- $135 billion in banking assets
As an ending note he says:
I personally won’t invest in crypto because I can’t imagine that the overwhelming majority of the 1300 cryptocurrencies available today will exist in the future.
He continues by saying that with that being said, ‘while the jury is still out on what the real value of crypto is, we should take a closer look at what’s in front of us, understand why it’s here and what it means to us today and in the future.’