As Per Estimates, Crypto and Blockchain are Used by 55% of the World’s Top 100 Banks
According to reports, more than half of the top 100 banks in terms of assets under management are investors in significant crypto and blockchain technology-based firms and projects.
Global financial titans are reputedly growing their engagement in developing crypto and blockchain enterprises through early and late-stage investment for initiatives and businesses in the field.
As per Blockdata, a blockchain market intelligence firm, 55 of the top 100 banks in terms of assets under management (AUM) have some exposure to the new technology. This engagement includes direct and indirect investments in cryptography and decentralized ledger technology businesses by banks or subsidiaries.
According to Blockdata’s findings, Barclays, Citigroup, and Goldman Sachs are the most active crypto and blockchain businesses. JPMorgan and BNP Paribas are also recognized as serial investors in the growing area.
According to KPMG research, these investments are part of a wider trend of considerable funding for blockchain businesses, with funding statistics already more than tripling the amount reported in 2020.
According to the report, crypto custodial is a significant emphasis area for banks entering the crypto market. Indeed, about a fifth of the top 100 banks by AUM is either creating crypto custody solutions or investing in businesses that provide digital asset custodial services.
As part of their early entry into cryptocurrencies, numerous institutions in the United States, Asia, and Europe develop crypto custody systems.
According to Blockdata, the expanding crypto and blockchain participation among banks is due to three major factors: exploding earnings of cryptocurrency companies, legislative improvements, and an increased desire among bank clients for exposure to virtual currencies.
NYDIG chairman Yan Zhao claimed that the enormous profits of crypto trading monstrosities like Coinbase were causing banks to reconsider their original aversion to cryptocurrency engagement.
Even though these large crypto firms have much smaller staff, they have massive income potential.
Coinbase is currently valued at over half that of Goldman Sachs, the world’s 13th largest bank, at $58.09 billion, while employing just around 4% of the latter’s employees.
Source: Cointelegraph news
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