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BlackRock’s head of digital assets, Robbie Mitchnick, has suggested that most major asset managers are not viewing Bitcoin through the lens of day-to-day payments when evaluating its role in portfolios.
In a recent podcast appearance, Mitchnick emphasized that institutions are largely focused on Bitcoin’s store-of-value appeal rather than its potential as a global payment technology.
“I think for us, and most of our clients today, they’re not really underwriting to that global payment network case,” Mitchnick said.
“That’s sort of maybe out-of-the-money-option-value upside,” he added.
The comments highlight a continued divide between the vision of Bitcoin as digital cash and the practical considerations driving institutional adoption today.
Focus Remains on the Digital Gold Narrative
Mitchnick explained that the speculative nature of Bitcoin’s payment utility means investors remain more committed to the asset’s “digital gold” narrative.
He said Bitcoin may still evolve into a widely used payment tool, but that scenario involves more uncertainty than its role as a store of value.
He described the payments thesis as “a little bit more speculative,” adding that institutions prioritize the resilience and long-term investment use case rather than transactional adoption.
Significant Scaling Needed for Bitcoin Payments
According to Mitchnick, substantial technical progress would be required before Bitcoin could realistically compete with traditional payment networks.
“There’s a lot that needs to happen in terms of Bitcoin scaling, Lightning, and otherwise to make that possible,” he said.The comments echo broader industry concerns around the future of Bitcoin scaling solutions.

Earlier analyses, including an August 2024 report from Galaxy Research, warned that many Bitcoin layer-2 networks — especially “rollups” — may struggle over the long term, despite current enthusiasm around faster and cheaper transaction layers.#BTCRebound90kNext? #USJobsData #CryptoIn401k #bitcoin #Binance $BTC

Standard Chartered announced that fund manager 21Shares has selected the bank as its digital asset custodian, potentially moving away from a crypto-native partner. The collaboration allows Standard Chartered to extend expertise into the fast-evolving digital asset ecosystem.
Margaret Harwood-Jones, the bank's global head of financing and securities services, said the partnership represents a significant step for both organizations. Standard Chartered will provide crypto custody services to 21Shares, which offers multiple exchange-traded crypto products.
However, 21Shares already partnered with crypto-native custodian Zodia Custody in late June 2024 to hold its assets. Zodia Custody was co-founded by Standard Chartered in 2020 and operated as a wholly owned subsidiary, indicating the bank wanted to avoid direct involvement in crypto at that time.
It remains unclear whether Standard Chartered will replace Zodia Custody or operate alongside it. The move comes as more traditional financial institutions roll out crypto services, often with reputational advantages over crypto-native competitors.
Standard Chartered said 21Shares will work with its newly established digital asset custody service based in Luxembourg. The announcement follows the bank's mid-July launch of a trading service allowing institutions and corporations to trade major cryptocurrencies.
Mandy Chiu, 21Shares' global head of product development, called the collaboration an important milestone in the continued mission to bring institutional-grade infrastructure to the digital asset ecosystem. She pointed to the bank's reputation in traditional finance as an advantage.
Chiu stated that as one of the world's most trusted financial institutions, Standard Chartered brings deep expertise in cross-border banking, risk management and custody. Other major banks have taken similar steps recently to expand crypto offerings.
U.S. multinational financial services firm US Bancorp reentered the crypto space in September by relaunching digital asset custody services aimed at investment managers. Germany's biggest bank, Deutsche Bank, was also reported in July to be planning to allow clients to store cryptocurrencies amid a broader trend in the nation.
Mid-August reports indicated Wall Street giant Citigroup is weighing plans to offer cryptocurrency custody and payment services. The trend has stirred debate within the industry as crypto-native institutions face intense competition from traditional finance.
Martin Hiesboeck, head of blockchain and crypto research at crypto financial services platform Uphold, said in October that large Bitcoin wallets moving assets into ETFs is another nail in the coffin of the original crypto spirit. Robbie Mitchnick, BlackRock's head of digital assets, previously said the company facilitated more than $3 billion worth of real Bitcoin to ETF conversions, with holders recognizing the convenience of maintaining exposure within existing financial adviser or private bank relationships.#BTCRebound90kNext? #USJobsData #CryptoIn401k #bitcoin #Binance $BTC