Those invested in Commonwealth Bank of Australia (ASX: CBA) shares might be excited about the bank’s latest commitment to cryptocurrency.
At the time of writing, the CBA share price is $97.46.
Let’s take a look at the latest news of the bank’s verge towards digital currencies.
CBA shares now have a slice of a crypto platform
CBA shareholders rejoice – the bank has purchased a minority stake in Gemini through the platform’s first capital raising.
The bank’s investment will support the partnership that will soon see CBA’s customers able to trade cryptocurrencies.
That’s right, if you missed the recent news from CBA, the bank is rolling out the ability to trade Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), among other cryptocurrencies, through its platform.
Gemini is one of the world’s largest regulated crypto exchanges. It also owns Nifty Gateway, a platform allowing users to create non-fungible tokens (NFTs).
CBA bought into the platform through Gemini’s recent US$400 million equity raise. The capital raise valued Gemini at a whopping US$7.1 billion.
CBA CEO Matt Comyn commented on the bank’s new investment, saying:
In looking at ways that we can support our customers, we have made the strategic decision to partner with Gemini…
Our investment in Gemini is part of an exclusive partnership in Australia and New Zealand.
As my Foolish colleague Bernd recently reported, many experts told The Motley Fool Australia CBA’s swing towards accepting virtual currencies has likely primed the sector. They predict other big banks will follow suit in offering crypto trading in due time.
The CBA share price has fallen 7% since it announced its plans to begin offering crypto trading. However, it’s still 16% higher than it was at the start of 2021.
CBA announced its crypto partnership just one day before the float of the ASX’s first cryptocurrency exchange-traded fund (EFT). The BetaShares Crypto Innovators ETF (ASX: CRYP) has dipped 1.88% since listing.