Collaboration:
Banks can use crypto to improve efficiency and reduce costs.
Is it even possible? Blockchain generally is slower and more expensive compared with traditional database.
That's
Banks can use crypto to provide new services to customers, such as loans based on crypto assets.
New service which involve cryptocurrency isn't bad idea. But loaning cryptocurrency asset is risky idea, especially considering price volatility. What happen if coin price decreased between when you take a loan and expected re-payment date?
I know that bank collaboration with crypto, such as XRP, is already underway.
XRP is centralized though. And IIRC bank actually cooperate with Ripple (company behind XRP) where they also offer different kind of service to bank.