Survey Shows 55% of Global Top 100 Banks Exposed to Bitcoin and Other Crypto Assets

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More than half of the top 100 banks are major investors in Bitcoin, digital assets, and blockchain-based businesses.

The world’s largest banks would quickly increase their involvement in trendy crypto and blockchain companies. They get involved through early and advanced financing of companies and projects within the industry.

Blockdata Research Report Shows Growing Interest in Bitcoin

Blockchain Market Intelligence – Wanted Blockdata Reported. According to the research results, 55% of the top 100 banks ranked by AUM are already interested in the cryptocurrency industry.

AUM stands for Assets Under Management, a measure of the market value of all financial assets of a financial institution. This association would include the indirect and direct investments of banks in cryptocurrency and decentralized ledger technology or their affiliates.

Related reading | American cinema giant AMC plans to accept Bitcoin for movie tickets

Research into the intelligence of the blockchain market had placed Citigroup, Barclays and Goldman Sachs among the leading backers of cryptocurrency and blockchain companies. Blockdata research also identified BNP Paribas and JPMorgan as perpetual investors in emerging companies.

The KPMG report indicates that these investments are part of the larger trend of good support for crypto and blockchain startups. Their funding figures have already started to double the amount recorded in 2020.

Blockdata research also reveals that crypto custody is the primary target for banks joining the crypto industry. Almost a quarter of AUM’s 100 largest banks are developing crypto custodial platforms. Otherwise, they support startups offering digital asset custody services.

Several banks operating in Asia, Europe and the United States are creating crypto custody solutions as their first step towards cryptocurrency.

Reason for banks’ exposure to digital assets

Blockdata, Blockchain Market Intelligence attributed the growing involvement of blockchain and crypto banking to three main factors. They include regulatory advancements, sky-high profits from cryptocurrency startups, and relentless demands from bank customers for May’s digital assets.

Yan Zhao, president of NYDIG, said popular crypto trading platforms like Coinbase are making a lot of comeback. This prompted banks to reconsider their restraint in involving Bitcoin and crypto.

Related reading | Small Town Women Make Up 65% of Indian Cryptocurrency Listings

However, this massive return has not been affected by the much smaller team members who work for them – the crypto companies.

Coinbase is a United States-based secure platform that makes it easy to buy, sell, and store cryptocurrencies like Ethereum and Bitcoin.

Bitcoin price action gathers momentum as bulls push towards $ 47,000 | Source: BTCUSD on TradingView.com

At the time of writing, giant crypto trading platform Coinbas is valued at $ 58.09 billion. This value represents almost 50% of the value of Goldman Sachs, although it only has about 4% of its workforce. Goldman Sachs is the 13th largest bank in the world.

Featured image from Pixabay and chart from TradingView.com

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