Bloomberg has reported that century-old respectable investment bank Cowen Inc. has announced that it will provide crypto custody services of "institutional grade" for hedge funds and asset management companies, helping them store digital currencies like Bitcoin.
Besides, the bank will invest $25 million in PolySign, Inc., a company co-founded by Ripple CTO David Schwartz.
Cowen to provide crypto custody services
Cowen CEO Jeffrey Solomon has stated that institutional demand for cryptocurrencies is high enough already, so it is time to step into the crypto custodial business.
The bank will help financial institutions to start trading crypto in the near future, according to him.
The demand is coming from cryptocurrency prices for Bitcoin, Ethereum and other digital assets soaring this year and major companies, like MicroStrategy, Tesla, top hedge funds and Goldman Sachs, forming a crypto trading group and offering Bitcoin investments along with Morgan Stanley to their wealthiest clients.
Cowen bank to invest in Ripple CTO's company
The bank also intends to make a gargantuan investment of $25 million into PolySign, a company co-founded by Ripple CTO David Schwartz and run by CEO Jack McDonald.
The company is making products that enable financial institutions to deal with crypto assets.
The $25 million provided by the bank is just half of the total amount of funds raised recently: $53 million. The list of investors includes Blockchain.com and Race Capital.