Definition ∞ Bank engagement refers to the participation and interaction of traditional financial institutions with the cryptocurrency and blockchain sector. This includes offering crypto-related services, investing in blockchain technology, or developing their own digital asset solutions. Such involvement signals a growing acceptance and integration of digital assets into the broader financial system. It also presents new opportunities for collaboration and competition between legacy finance and the crypto economy.
Context ∞ The state of bank engagement with crypto is a constantly changing news item, often driven by regulatory clarity and institutional demand. A key debate involves the extent to which banks should directly custody or trade digital assets versus providing infrastructure for clients to do so. Future developments include central bank digital currency initiatives, tokenized assets on private blockchains, and enhanced compliance frameworks enabling broader institutional participation in the digital asset market.