Crypto has no place in private banking today: Pictet

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The CEO of Pictet Group’s Asian division, Tee Fong Seng, said at a summit that while the crypto asset class continues to mature, now may not be the time for private bankers to invest in the sector.

Crypto is an industry that is here to stay, even if some of its growing pains remain remarkably scary for some players. Indeed, things are not helped by the recent events where several crypto companies have gone bankrupt, and wild volatility is not helping either.

Because of such concerns, the Swiss asset manager is warning the Pictet Group that now may not be the time to dive into crypto – at least not for now.

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Crypto Asset Class Cannot Be Ignored – But,

In comments created at a panel on the sidelines of a Bloomberg summit in Asia, a director of Swiss company Pictet emphasized why the asset manager is not excited to get into crypto.

According to Tee Fong Seng, the CEO of Pictet’s Asian subsidiary, the growth of crypto as an asset class cannot be reversed, nor can it be “ignored” in the future. However, the company believes that crypto as it is – with some of the concerns above – has no “place” in the private banking sector.

Crypto will be an asset class that we cannot ignore, but today I don’t think there is room for private bankers and private banking walletsshe said.

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But despite these prospects, the company, like many others, seems to be closely following developments in the crypto market. For customers, this means looking at when they can start offering services such as trading.

He notes that a look at the crypto market’s performance over the past two years shows that it is possible to “To earn a lot of money.” But at the same time, with the huge volatility, it is also very easy to “lose a lot of money,he noted.

The question is, when do we bring the customers into the picturehe posed while pointing out that the Geneva-based asset manager had a team looking for opportunities.

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Worries aside, mainstream companies are pushing into crypto

A few years ago, the best of financial institutions and other big mainstream companies was a blatant rejection of crypto.

Many remain on the fence, but many more have taken a step – even more so amid crypto’s latest bull market. Today, global giants such as Fidelity Investments, BlackRock, Charles Schwab and Julius Baer Group have ventured into digital asset products – including crypto-focused exchange-traded funds, custodial services and even trading to their clients.

The partnership announced today between Coinbase and BlackRock, targeting institutional clients, is a prime example of the increased interest in crypto exposure.

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