Leading Banks And Financial Institutions Globally Have Invested In Crypto Ventures
‘Digital economy will replace traditional economy’, ‘Bitcoin can destroy central banks’, ‘Cryptocurrencies will replace FIAT’. If you are in the crypto market for quite some time, you must have come across statements like these. There is a long list of arguments that are put forward to highlight the disadvantages of the crypto-powered digital economy. But, can these arguments stand the test of time? The increasing adoption of crypto by traditional financial institutions has instilled confidence in new investors who were earlier apprehensive about putting their money in the crypto market. Tens of leading banks across the world have invested in crypto in the last few years. According to Blockdata, nearly 55% of the world’s top 100 banks have some king of crypto and blockchain exposure.
Crypto and blockchain-related projects like Coinbase and Ripple have received significant financial backing from banks and leading financial institutions. The adoption of crypto and the underlying technology – blockchain – could be game-changing for the future of the industry. The $2 trillion crypto market could zoom 100 times by 2030. From over 300 million investors in 2022 to an expected 3.5 billion users by 2030, the market growth of crypto is set to be phenomenal. These stats could be one of the major factors prompting leading banks and financial institutions to jump on the bandwagon.
Big Banks Investing In Bitcoin & Crypto
Several banks and financial institutions across Asia, Europe, and the Americas are investing in crypto in some way or another. Here’s a list of some of the frontrunners in the race of crypto-adoption:
- Morgan Stanley: Morgan Stanley is one of the top banks investing in cryptocurrencies. It is the first US bank to offer access to Bitcoin assets, to its wealth management clients. The bank’s total investment in cryptocurrencies exceeds $234 million. Morgan Stanley has invested in NYDIG, a renowned crypto custody firm. NYDIG is the bitcoin subsidiary of Stone Ridge, and it assists partners in developing unique crypto products from scratch.
- Standard Chartered: Standard Chartered is another major investor in crypto and blockchain. The London-based bank has invested more than $380 million in cryptocurrency. Standard Chartered is a major investor in Ripple, one of the most popular blockchain networks. The market capitalization of XRP – Ripple’s token – is nearly $48 billion. Besides Ripple, Standard Chartered has also invested in Cobalt, a UK-based trading technology provider.
- BNY Mellon: According to Blockdata, 23 of the 100 banks investing in cryptocurrencies are either building their own custodial technology or integrating a tech provider’s product into their systems to streamline crypto services. BNY Mellon (Bank of New York Mellon Corporation) has invested $321 million in crypto, in a total of 5 investments. The company announced in February 2021 that it will hold, transfer, and issue digital currencies, including Bitcoin.
- Citibank: Citibank has invested a whopping $279 million in crypto-related technologies and services. The bank has invested in SETL- an open-source, versatile, and interoperable technology provider. Citibank uses SETL for the secure movement of funds, and other assets. SETL’s technology enables tokenization, digital custody, and distributed ledger technology (DLT) for securities markets. SETL combines industry knowledge with technical innovation to create regulated, operational platforms to solve common industry problems.
- JP Morgan Chase: JP Morgan is one of the largest banks in the United States to invest in cryptocurrency. So far, the bank has invested over $206 million in the crypto market. One of the major investments from the bank has gone to ConsenSys, a New York-based Bitcoin company that hosts a wide range of blockchain products, including Infura and MetaMask. ConsenSys is also active in DAO, DeFi, and NFT spaces.
- Goldman Sachs: Goldman Sachs is among the major banks investing in cryptocurrency. So far, the bank has made as many as 8 investments in the crypto sector, amounting to a total of $204 million. The leading global investment bank has made a major investment in Coin Metrics, which provides blockchain data to institutional clients.
- Nomura: Nomura is a Japanese financial holding company that has invested substantially in the crypto sector. As of 2021, Nomura has invested a whopping $146 million in the crypto sector. The company has invested a significant amount in Quantstamp, a Web3 security leader that has performed more than 200 audits and secured over $200 billion in value. The company facilitates the mainstream adoption of blockchain technology.