Financial services’ company Standard Chartered has organized a new cryptocurrency research team that expects Bitcoin to double to $100,000 by early next year.
The team added that in the longer term that figure could rise to as much as $175,000. The bank also said it “structurally” valued Ethereum at $26,000-$35,000. Geoffrey Kendrick, who is also the global head of its emerging market currency research, leads the new crypto unit.
“As a medium of exchange, bitcoin may become the dominant peer-to-peer payment method for the global unbanked in a future cashless world,” the team said in a note. “Cyclically, we expect a peak around $100,000 in late 2021 or early 2022.”
Standard Chartered services
Just earlier this summer, Standard Chartered announced the launch of a digital asset brokerage and exchange platform. The U.K.-based exchange will provide access to crypto markets for institutional trader. It is set to launch in Q4 2021 but still remains subject to regulatory approval.
The platform, intended for U.K. and European institutional and corporate clients, was a joint venture between SC Ventures and BC Group. SC Ventures is the innovation unit of Standard Chartered, while digital asset firm BC Group manages Hong Kong-licensed crypto exchange OSL.
According to data collected by Standard Chartered, the total volume of trading on major exchanges averages over $4 billion per day. The data also reported over $1 trillion across all crypto assets. With the exchange, Standard Chartered intends to position itself within this growing market, particularly for institutional investors.
With this target segment in mind Standard Chartered hopes to rival American crypto exchanges Gemini, BitGo, and London-based LMAX Digital. It also joins investment banks Morgan Stanley, Goldman Sachs, and BNY Mellon among Wall Street names joining the action. Several of these lenders revealed plans to launch cryptocurrency trading desks for clients earlier this year.