We have been hearing that the global banking giants are taking interest in emerging crypto and blockchain firms. And now, research data also suggests the same fact too.
According to Blockdata, 55 out of the top 100 banks by assets under management (AUM) have some form of exposure to the new technology. Moreover, the involvement is in the form of direct & indirect investments in crypto and decentralized ledger technology firms.
The analytics firm’s data also shows that Barclays, Citigroup, and Goldman Sachs are one of the most active backers of crypto and blockchain firms. Also, JPMorgan and BNP Paribas are some of the most active investors in the emerging space.
Many of these investments are also for blockchain startups. According to a KPMG report, funding figures have already crossed the previous year’s number twice.
The research also showed that crypto custody is a major focus point for banks. Almost a quarter of the top 100 banks are either developing crypto custody solutions. Moreover, they are also backing custodial services providers for digital assets.
Through the data, Blockdata stated three reasons for the growing crypto and blockchain involvement among the banks.
- Skyrocketing profits of crypto startups.
- Regulatory advancements.
- Increasing demand among bank customers.
Moreover, Banks are also taking notice of the fact that global crypto exchanges are generating tremendous revenues from crypto trading. A couple of months back, NYDIG president Yan Zhao stated that the massive revenues of global crypto exchanges are making banks rethink their stance towards digital assets.
The effect is even more profound considering that these new platforms have a much smaller team and a significantly larger revenue potential.