More than fifty percent of the top 100 banks in the world with regard to assets under management (AUM) have exposure to the emerging crypto and blockchain industry.
Data acquired from Blockdata, a blockchain analysis firm, reveals that 55 out of the world’s top 100 banks have invested in numerous major crypto and blockchain initiatives. However, not all of the banks have directly invested in the space — some have exposure via subsidiaries.
Among the 55 banks that are exposed to crypto and blockchain, some have invested in more than 10 crypto businesses. For instance, Barclays, a British multinational bank, has poured substantial money into 19 crypto startups.
American banks are also considerably interested in the crypto space. Citigroup, a leading American global bank, has invested in 9 blockchain and crypto startups. Goldman Sachs and J.P. Morgan Chase, two prominent American multinational banks, have invested in 8 and 7 crypto initiatives, respectively.
While it is not obvious how much money these banks have invested in the crypto space, it is estimated that Standard Chartered, a British global banking firm, has invested approximately $380 million. BNY Mellon, an American investment bank with $470 AUM, has invested over $320 million in crypto and blockchain firms.
“Despite being very vocal about how bad Bitcoin supposedly is, many can’t ignore the potential revenue streams and importance of having a strong strategic position in the crypto economy,” the report reads.
The report reveals that the majority of the banks have invested in crypto custody, the act of providing security and storage services for virtual currencies. As per data, 23 of the “top 100 banks by assets under management are building custody solutions, or investing in the companies that provide them.”
Interest in Crypto and Blockchain Soars
Prior to this, a report by KPMG accounting firm declared that investors worldwide have poured over $8 billion into crypto and blockchain startups during the first half of 2021. According to the report, 548 investment deals in crypto and blockchain have occurred between January and June 2021.
Anton Ruddenklau, global co-leader of fintech at KPMG, asserted investors worldwide are exceptionally concentrated around crypto and blockchain sectors. “Digital currencies and virtual assets are a big, big topic of conversation. I think for the rest of this year at least, crypto will be a very hot ticket for investors,” he stated.
As previously covered by ZyCrypto, venture capitalists and big pension funds are increasingly interested in crypto businesses. Henri Arslanian, crypto lead at PwC, said there is even some level of competition when it comes to investing in the crypto industry.
“Let’s say they’re looking at a deal and they believe it’s worth $10 million, and you’re seeing large VCs come in and put a bid in for a higher valuation. This is happening a lot with very early-stage companies, say, $5 million to $20 million — the prices are being inflated,” Arslanian said.