55% of the world’s top 100 banks are said to have exposure to crypto and blockchain

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Global banking giants are said to increase their involvement in emerging crypto and blockchain companies by funding early and late stage projects and businesses in the sector.

According to research from Blockdata, a blockchain market information company, 55 of the top 100 banks in terms of assets under management (AUM) have some form of exposure to the new technology. This involvement would intersect with direct and indirect investments in crypto technology companies and decentralized accounting by the banks themselves or through their subsidiaries.

Blockdatas research places Barclays, Citigroup and Goldman Sachs among the most active backers of crypto and blockchain firms, with JPMorgan and BNP Paribas also being identified as serial investors in the emerging space.

These investments are part of a wider trend of strong support for blockchain startups, with funding figures already doubling the amount recorded in 2020, according to a KPMG report.

Research also shows that custody of crypto is a major point of interest for banks as they delve into the crypto space. Indeed, nearly a quarter of AUM’s top 100 banks are developing crypto custody solutions or supporting startups that offer digital asset custody services.

As previously reported by Cointelegraph, several banks in the United States, Asia and Europe are building crypto custody platforms as part of their preliminary foray into cryptocurrencies.

Related: Cryptocurrency Custody Gives Commercial Banks a Place in the Market

Blockdata attributed the growing involvement of crypto and blockchain among banks to three main factors that have skyrocketed cryptocurrency startup profits, regulatory advancements, and growing demand from bank customers for exposure. to digital assets.

In May, NYDIG Chairman Yan Zhao said the massive income from cryptocurrency trading giants such as Coinbase was causing banks to reconsider their initial reluctance to get involved in cryptocurrencies.

This huge revenue potential is despite the much smaller teams working for these large crypto companies.

At $ 58.09 billion at the time of writing, Coinbase relies on a valuation nearly half that of Goldman Sachs, the 13th largest bank in the world, although it only employs around 4. % of its workforce.

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