PNC Bank Introduces Bitcoin Trading for Eligible Clients through Coinbase Integration

PNC Bank has started offering Bitcoin trading to eligible clients through integration with Coinbase, becoming the first major U.S. bank to facilitate direct Bitcoin transactions within its own digital platform. With this development, PNC aims to expand access to cryptocurrency trading for its wealthiest clients and beyond.

Key Takeaways

PNC Bank is the first significant U.S. bank to offer Bitcoin trading directly within its platform.
The trading service is available to eligible private bank clients and marks the initial phase of PNC’s partnership with Coinbase.
PNC Private Bank intends to broaden its services to additional client categories and enhance functionality over time.
Wealthy clients are increasingly interested in cryptocurrency, prompting banks and asset managers to expand their offerings.

PNC Bank launches Bitcoin trading for eligible clients via Coinbase integration

PNC Bank's Move into Cryptocurrency

PNC Bank has made headlines by launching direct spot Bitcoin trading for eligible private bank clients, making it the first major U.S. bank to allow buy, hold, and sell functions directly within its digital platform. According to a statement released on Tuesday, this initiative is the first step in PNC’s partnership with Coinbase, announced back in July. This partnership leverages Coinbase’s Crypto-as-a-Service for trading and custody.

PNC Private Bank caters to high-net-worth individuals, families, family offices, and business owners. The bank has plans to gradually expand access to a broader range of clients and introduce more features in the future. As per data from the Federal Reserve, PNC ranks as the eighth-largest commercial bank in the U.S., boasting approximately $564 billion in assets and over 2,300 branches nationwide.

Coinbase, Banks, Binance, JPMorgan Chase _Source:_Bryan Armstrong

The Growing Interest in Crypto Among Wealthy Clients

This year has seen numerous major U.S. banks expand their cryptocurrency offerings, although many are focusing primarily on custody services or investment products like exchange-traded funds (ETFs). For instance, on December 2, Bank of America announced that starting next year, it will enable its wealth management clients to invest in four Bitcoin ETFs from Bitwise, Fidelity, Grayscale, and BlackRock.

These ETFs give investors exposure to Bitcoin price fluctuations through regulated funds traded on stock exchanges, eliminating the need to directly buy and hold the digital asset.

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As cryptocurrency adoption becomes increasingly mainstream, asset managers and cryptocurrency exchanges are broadening their services for affluent clients. In June, JPMorgan disclosed plans to allow its trading and wealth-management clients to use crypto ETFs as loan collateral. They also indicated they would start factoring clients’ cryptocurrency holdings into overall net worth assessments.

Additionally, Binance has launched a concierge-style service aimed at family offices, asset managers, and private funds entering the cryptocurrency market.

Notably, crypto allocations are rising in finance hubs like Hong Kong, mainland China, and Singapore, with some investors intending to allocate around 5% of their portfolios into digital assets. Wealth managers in these regions report growing client inquiries and a surge of interest in new cryptocurrency funds.

The increasing demand for cryptocurrency among wealthy investors is transforming the financial advisory landscape. A recent survey by Zerohash, which involved 500 U.S. investors aged 18 to 40, revealed that 35% of respondents had moved their assets away from advisers who did not offer access to cryptocurrencies.

Coinbase, Banks, Binance, JPMorgan Chase Share of investors who shifted assets from their advisers due to crypto. _Source:_Zerohash

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