PNC Bank is partnering with Coinbase to offer cryptocurrency services to its clients, initially focusing on wealth and asset management.
PNC Bank, a financial services corporation headquartered in Pittsburgh, has announced the integration of Coinbase’s Crypto-as-a-Service platform. This platform will allow consumers to purchase, store, and sell cryptocurrency.
The crypto move disclosed on Tuesday also stated that PNC will provide Coinbase with “best-in-class” banking services. The PNC-Coinbase agreement results from an increasing demand for regulated cryptocurrency offerings.
William S. Demchak, CEO of PNC Bank, stated, “This partnership allows us to address the increasing demand for secure and efficient access to digital assets on PNC’s trusted platform.”
PNC Bank has emerged as one of the most significant American institutions that have introduced cryptocurrency services to the general public.
Following years of cautious approach, US banks are progressively incorporating crypto into their portfolios, indicating a shift toward a more comprehensive integration of digital assets into mainstream portfolios.
Gadi Chait, the investment manager at Xapo Bank, stated to CryptoNews that traditional finance is gradually acknowledging the appeal of crypto and is competing for a market share.
PNC Bank did not disclose the timeline for the crypto introduction.
Newfound Token Enthusiasm Among US Banks
There is a desire to establish more substantial relationships with crypto firms to capitalize on the opportunities due to the more lenient regulatory environment under Trump.
The traditional banks, JPMorgan Chase and Citigroup, have disclosed their intentions to participate in stablecoin offerings. Additionally, Moynihan, the CEO of Bank of America, stated that the company is researching to ascertain the demand from its clients before implementing its stablecoin.
PNC Bank, which oversees $421 billion in client assets, has recently joined the expanding roster of financial institutions increasing their cryptocurrency exposure.
Analysts Increase Price Targets For PNC Bank
Google Finance data indicates that PNC Financial Services Group shares, the bank’s parent company, increased by 0.59% after Tuesday’s announcement.
Additionally, Coinbase is rapidly emerging as a critical access point for financial institutions interested in exploring the cryptocurrency market. Piper Sandler and Cantor Fitzgerald raised their price objectives for the company, which resulted in substantial analyst activity for the firm.
Piper Sandler increased the firm’s price target for Coinbase from $190 to $350, which is attributed to a more optimistic outlook for digital assets.
Coinbase’s crypto-as-a-service platform provides partners with custody and trading tools that would be prohibitively expensive to develop otherwise.
