Prime Trust, a company modernizing financial infrastructure, is launching software that can easily help financial institutions manage cryptocurrencies. The Office of the Comptroller of the Currency’s (OCC) stated this year that nationally chartered banks in the U.S could offer crypto custody services. With large players in the payments space like PayPal already taking a leap of faith into crypto, banks are expected to make the next move. How could Prime Trust help them do so?
PayPal Becomes The Catalyst
With PayPal recently announcing that 200M U.S users will have the ability to buy, sell, and hold cryptocurrencies, it is expected that banks will be looking to compete with the payments giant. Aside from millions of users being introduced to crypto assets, PayPal also plans to get 26M merchants involved in digital assets. Many argue that this is the biggest development in crypto since inception.
With banks experiencing thin margins due to low interest rates, digital assets could be a market they try to monetize next. Due to compliance concerns, banks have historically had a difficult time innovating. In an environment where the largest banks have significant market share, they haven’t necessarily been pressed to innovate. Over the last 3-5 years, this has started to shift, with many fintech firms taking significant market share from legacy banks.
With the The Office of the Comptroller of the Currency’s (OCC) stating in August that nationally charted banks in the United States could offer crypto custody services, it seems like something banks will take advantage of, given the current environment and increasing demand in digital assets.
Where Prime Trust Comes In
In a recent press release from Prime Trust, the company announced that they were rolling out a proprietary core banking software that could revolutionize the way companies custody cryptocurrencies. The technology company stated that national banks, trust companies, and fintechs will have a way to custody fractionalized investments, which supports crypto assets and digital securities. Fractionalized investments will be supported up to 18 decimal points.
The product is called PrimeCore and its solutions are offered through Application Programming Interfaces (API’s). The cloud-based SaaS provides solutions such as PrimeCustody, PrimeRails, Prime Liquidity, Prime Settlement Network, PrimeCompliance, and PrimeIndemnity.
While talking about the adoption of digital assets by banks, PrimeCustody seems to be a viable solution. PrimeCustody avails entities to hold many different currencies such as the USD or other fiat currencies. Additionally, various digital assets like Bitcoin can also be supported. PrimeCustody is very interesting because it would also allow financial institutions to custody these assets within many account structures such as IRA’s. All of a sudden banks could potentially get cryptocurrency in the hands of retail investors. To date, you can not call up your local bank and request digital assets. Aside from compliance, these banks never had the infrastructure in place to support these markets.
In the recent announcement by Prime Trust, Scott Purcell, the CEO of the company stated that:
“We’re seeing tremendous interest from banks and fintech innovators looking to get into the crypto space but they hit a roadblock once they realize that their legacy core systems like FIS, Fiserv and Jack Henry are not built to handle the precision requirements of fractional or digital assets. As a result, they experience massive amounts of drift and operational nightmares. PrimeCore is purpose-built to support these assets and allows B2B customers the ability to integrate into their systems via API’s. It’s a one-stop shop that solves the pain points institutions are experiencing in trying to launch next-generation services. “
Prime trust continues to provide modernized financial infrastructure for mobile financial apps, crypto exchanges, securities exchanges, OTC desks, investment advisors, and many other entities. As traditional finance prepares for a massive shift to compete with emerging fintechs, Prime Trust is in a prime position to help these legacy systems scale into new horizons.
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