Just TWO DAYS ago, I pounded the table of the exploding “arms race” that recently launched in the crypto space, now that the OCC has permitted Federal banks to be crypto custodians, whilst Wyoming awarded (to Kraken and Avanti) the first State crypto bank charters.
In other words, leading banks and exchanges — from both the legacy finance and crypto communities — are racing to acquire whatever crypto Prime Brokerage assets they can, from a space that remains highly undeveloped and fragmented.
This is why DLCC will be a crown jewel asset — as unlike essentially all “crypto Prime Brokerage” assets, it has built the CORE product; i.e., the all-in-one SOFTWARE banks so desperately require to enable institutional participation, in a space where a proverbial “wall of money” is arriving, NOW.
That said, I have always noted the “double dog years” pace of crypto market development — which is why it’s no surprise, with Bitcoin closing in on $17,000 as I write, that an EXPLOSION of institutional interest occurred THIS WEEKEND, above and beyond what I wrote Saturday.
To wit, Sky Bridge Capital amending its SEC charter to enable its $3.6 billion fund to buy Bitcoin; Greyscale Investments (operator of the GBTC closed-end fund) buying its 500,000th Bitcoin (nearly 3% of total supply), at a pace DRAMATICALLY higher than mining production; and Citibank, following JP Morgan, which last week predicted Bitcoin would triple, challenging gold’s store-of-value leadership, forecasting BTC could reach $318,000 within 12 months.
In other words, in my VERY strong view, the first hints that a concept long espoused by the (until now) tight Bitcoin community, that a “Bitcoin Standard” was possible, is spreading virally to the institutional investment community. That is, the potential for Bitcoin becoming both the principal store-of-value asset and primary unit of account.
With the global political, economic, and monetary fabric being exposed, and destroyed, by the “great accelerator” known as COVID, the “viral” explosion of not only Bitcoin demand, but philosophy is in my view, a fait accompli — and obviously, given Citibank’s December 2021 price target, a rapidly growing mainstream view, too.
To that end, consider just how nascent and fragmented crypto infrastructure is — and thus, how valuable the robust, comprehensive full-service, institutional grade crypto Prime Brokerage platform DLCC has built (over the past 18 months) could be, to the equally powerful “wall” of legacy AND crypto finance companies seeking to profit from it.
Consequently, by the end of 2021, I expect ALL institutions, of ALL kinds (money managers, corporations, and governments) to either directly participate in the crypto market or, at the least, internally discuss potential crypto strategies.
Digital Lending Capital Corp is Crypto’s first full-service Prime Brokerage software solution — fully online, and actively operating in today’s exploding digital market. For more information, please go to https://www.dlcc.co/; email me, DLCC’s Marketing Director, at andy@dlcc.co; or Mike Hamill, Global Head of Hedge Fund Sales, at mike@dlcc.co.