Michael Saylor, executive chairman of Strategy, informed attendees at Binance Blockchain Week that the skepticism prevalent among major banks is dissipating more rapidly than he anticipated.
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Initially, he projected a timeline of four to eight years for significant financial institutions to fully adopt Bitcoin. Now, he believes this timeframe is shortening and real changes are already apparent.
Banking Giants Reverse Course
According to Saylor, the last year has witnessed major players — including Citibank, BNY, Bank of America, PNC, JPMorgan, Wells Fargo, and Vanguard — transition from opposition to a more receptive view on crypto.
Recent reports indicate that Vanguard has allowed clients to trade ETF shares associated with XRP and Bitcoin on its platform. Saylor mentioned that many institutions are actively planning to introduce custody services and credit lines linked to crypto assets.
Loans Backed By Bitcoin
As Saylor noted, Charles Schwab is gearing up to provide Bitcoin custody services and extend credit based on BTC by next year, with Citibank rumored to be pursuing a similar path.
He reflected on the past challenges of securing bank loans using Bitcoin as collateral, saying that lenders have altered their stance in just about six months.
According to him, eight of the top ten US banks are now issuing credit that is backed by Bitcoin, which underscores the swift changes in the industry’s mindset.
Political Climate Could Be Speeding Things Up
Saylor attributed shifts in policy during US President Donald Trump’s administration as a key factor for banks stepping forward.
Many firms had already started exploring blockchain years back — Goldman Sachs, for instance, issued one of the first Bitcoin-backed loans in 2022 — but a more favorable regulatory environment has, he stated, sped up planning and product development.
However, banks still face legal, operational, and risk challenges before these services can be widely offered to retail customers.
Markets Watching Fed Announcement
In the meantime, traders and analysts are monitoring the Federal Open Market Committee. The Fed is predicted to cut rates by 0.25%, lowering the target to 3.5%–3.75%, a typical move that tends to benefit risk assets like Bitcoin. Increased volatility is expected around the announcement, with some market participants cautioning that early gains may reverse rapidly once the Fed provides guidance.
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Technical Signals And Sentiment
Alongside the banking update, Bitcoin’s movements were analyzed. The crypto fear gauge hit 10 this week, indicating extreme fear, with prices rebounding from $86,700 to about $92,300.
One analyst noted resistance near $94,200, suggesting that a clean breakout could lead to a rise toward $103,000. Another commentator observed that Bitcoin has been trailing the Nasdaq’s recovery, a divergence that could influence market dynamics in either direction if conditions shift.
Featured image from The Information, chart from TradingView
