More than half of the top 100 banks are major investors in Bitcoin, digital assets, and blockchain technology-based firms.
World’s largest banks are reportedly growing rapidly in their involvement in the trending crypto and blockchain companies. They get involved through early and late-stage financing of businesses and projects within the industry.
Blockdata Research Report Shows Increasing Interest In Bitcoin
A blockchain market intelligence – the Blockdata researched outlined a report. From the research result, 55% among the 100 top-ranked banks by AUM are already taking interest in the cryptocurrency sector.
AUM means Assets Under Management, a measure of the market value of all the financial assets of a financial institution. This association reportedly includes the bank’s indirect and direct investment in cryptocurrency and decentralized ledger technology or their subsidiaries.
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Blockchain market intelligence research had placed Citigroup, Barclays, and Goldman Sachs among high-ranked backers of cryptocurrencies and blockchain companies. The Blockdata research also identified BNP Paribas and JPMorgan as perpetual investors in emerging firms.
The KPMG report states that these investments form part of the bigger trend of good backing for cryptos and blockchain startups. Their funding figures have already started doubling the sum recorded in 2020.
The Blockdata research also reveals crypto custody to be the main target for banks that join the crypto industry. Nearly a quarter of the largest 100 banks by AUM are developing crypto custody platforms. Otherwise, they back startups offering digital assets custodial services.
Several banks operating in Asia, Europe, and United States build crypto custody solutions as their preliminary thrust into cryptocurrencies.
Reason For Bank’s Exposure To Digital Assets
Blockdata, Blockchain market intelligence attributed the increasing bank’s blockchain and crypto involvement to three major factors. They include regulatory advancements, very high profits of cryptocurrency startups, and incessant requests from bank customers for May’s digital assets.
Yan Zhao, NYDIG president, stated that popular crypto trading platforms like Coinbase make numerous returns. This made banks want to revisit their restraint in Bitcoin and crypto involvement.
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However, this massive return was not affected by the significantly smaller team members working for them- the crypto companies.
Coinbase is a secure US-based platform that makes it easy to buy, sell, and store cryptocurrencies like Ethereum and Bitcoin.
The Bitcoin price action gains momentum as the bulls push towards $47k | Source: BTCUSD on TradingView.com
At the time of writing, the giant crypto trading platform Coinbas is valued at $58.09 billion. This value is almost 50% of the value of Goldman Sachs, despite having just about 4% of its workforce. Goldman Sachs is the 13th biggest bank globally.
Featured image from Pixabay, and chart from TradingView.com
