The working group is not a new development and has, in fact, existed since 2015, a source familiar with the matter told CNBC.
The news follows a report by Fortune magazine that hedge-fund billionaire Steve Cohen’s venture arm Cohen Private Ventures invested in Autonomous Partners, a cryptocurrency-focused investment fund.
Many industry experts believe that increased involvement from institutional investors in the cryptocurrency space will boost confidence in an otherwise dubious market.
“It definitely is causing some excitement,” Mati Greenspan, senior market analyst at eToro, said of the report on Monday. “The idea of big financial firms moving into crypto certainly isn’t new, and this is a trend we’ve been noticing gaining strength since November.”
Virtual currencies have been shrouded in doubt due to excessive volatility in the market resulting in wild price swings. Bitcoin soared close to $20,000 late last year but has declined since, with transaction volumes falling significantly.
Financial regulators around the world are concerned about the speculative nature of cryptocurrencies and their possible use for illicit activities. China and South Korea have both banned a practice known as an initial coin offering, for instance, which is a means of start-ups selling new digital tokens to propel their business.
— CNBC’s Cheang Ming contributed to this report.