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The new world of digital assets and the traditional financial system were long feared to be parallel lines that would never meet. For starters, the traditional financial system operates on explicit rules and regulations that make it a safe environment for both investors and traders.
Sadly, that is not the case with the virtual economy. In fact, this new economy lacks the full form of standard regulatory mechanism that protects investors and traders. This has been the bane of the virtual world since its inception.
What would happen if both systems co-exist on the same platform? Well, that is the m(/b)illion dollar question that we are yet to find answers to.
True, some banks – for example, JPMorgan – have risen to the challenge of incorporating the virtual world into their long-standing system. However, this would be the first institution that gives its customers the opportunity to hold and manage both digital assets and fiat currencies.
The brains behind this first of its kind initiative are both subsidiaries of Mercantile Global Holdings Inc. (MGH). The project was spearheaded by management from San Juan Mercantile Exchange, Inc. (SJMX) and the renowned San Juan Mercantile Bank & Trust International Corp. (SJMBT). Exploiting resources and expertise from both subsidiaries, SJMX and SJMBT were able to create an efficient and secure platform to trade virtual assets as well as fiat currencies. This platform is proposed to provide an end-to-end solution that comprises of everything from matching trades to clearing and custody of both fiat currencies and virtual currencies.
A few days back (on Monday, April 1, 2019), SJMBT announced that it has received its first client deposit as such, ready to initiate operations in full force. This wasn’t much of a shocker as customers were already of high hopes after the bank received the license to operate from Puerto Rico’s Office of the Commission of Financial Institutions (OCIF) last month.
To create a safe and transparent environment, SJMBT will be responsible for the custody of fiat currencies deposited by clients while a number of approved digital asset custodians will do the honors of holding virtual currencies. Besides ensuring a secure and transparent environment, this division of labor will help to cut back on the cost of running the platform.
Commenting on this spectacular breakthrough, the President and COO of SJMBT expressed joy over the completion of the project, saying it is, indeed, a significant milestone for the bank. He added that now, crypto institutional market participants will have uninterrupted access to a licensed and fully regulated banking platform that provides all the dreamed features of an exchange.