In a few years, a younger generation of financial service customers will be able to go to a bank and gain access to loan products, savings accounts and investments that may contain crypto- and legal assets. In fact, the recording that allows all of this to happen is truly groundbreaking.

You may already know that Kraken, a San Francisco-based cryptocurrency exchange, is now the first US-based cryptocurrency firm to become a bank. At this point, the condition of the officially registered bank means that Kraken will be able to offer more banking and financial alternatives to existing customers. This also means that Kraken Financial will be able to operate across several jurisdictions without having to deal with regulatory compliance plans.

Kraken is currently working with Silvergate Bank to offer SWIFT and FedWire financing options to US customers. In the near future, more and more of this type of partnership will become the status quo. Thus, the time has come to make this known to traditional backward banks.

Silvergate Bank is now one step ahead of the rest. The company’s customers are 880 digital asset companies. These customers have invested over $ 1.5 billion in the bank. For most of the big banks, or even the largest cryptocurrencies, there is still a small amount of money in terms of market value. Keep in mind, however, that major cryptocurrency exchanges Coinbase and Gemini are currently JPMorgan clients, although CEO Jimmy Dimon regularly condemned the value of bitcoin (BTC) and cryptocurrencies just a few years ago.

Consumers will soon identify a full-side bank as a bank that offers financial services in both cryptocurrency and fiat currency. It’s time to start getting the tools you need to trade cryptocurrencies. Banks need to start adapting or staying away. Make no mistake about this.

But what tools do they really need?

Forensic tools in Blockchain
An investigator can use a black lamp or a fingerprint powder to reveal all kinds of evidence. The notion that Bitcoin or blockchains are completely secret has been removed again and again. In fact, blockchain-based currencies are more open to research methods than fiat currencies. Of course, the origin of the transactions can be revealed. For banks to do this with cryptocurrencies, they need blockchain researchers and risk assessment tools that can go a step further than the services currently available to the public.

These forensic tools already exist, and they allow investigators to track digital paper tracks across addresses, wallets, transactions, blockchains, and other digital devices using techniques such as clustering and inference. Companies in this field are developing their own separate search algorithms designed to detect the origin of hidden funds and uncover criminals.

Remember that traditional paper money is still the currency of professional discs. Cryptocurrency is in its infancy and will be a powerful force in reducing the risk of money laundering worldwide.

DeFi will not be the answer for the average consumer
Make no mistake, the prospects for the decentralized financial sector of the cryptocurrency are almost endless. Farming may be a real trend, but the DeFi sector is so much more.

DeFi projects can allow you to receive basic and technical trading advice from other traders and only pay a commission if you make money. You can redirect your capital to digital investment portfolios without spending money that can eat up hundreds of thousands of dollars in your retirement portfolio. Investors can also derive derivatives from their coveted cryptocurrency without having to switch between blockchains. These innovations are just the tip of the iceberg. As the market continues to evolve, more and more DeFi projects will enable us to do things in the future that we do not even think about.

However, there is one fundamental problem with all of this. The average bank customer will not use decentralized financial protocols for decades. Yes, most cryptocurrency enthusiasts know enough to find the contract name of the ERC-20 token, sell it on decentralized exchanges and invest that token through credit platforms and liquidity pools.

However, the average person will still talk to a banker from time to time, even though most of his wealth is in cryptocurrency. In addition, governments around the world work with government-backed cryptocurrencies that the average consumer is guaranteed to receive from a bank of their choice.

Source: CoinTelegraph