In 2021, the majority of big banks have investments in crypto and blockchain-related businesses. According to research by Blockdata, a blockchain market intelligence outfit, Out of the top 100 banks in terms of assets under management, 55 have made investments in cryptocurrencies and/or blockchain startups. Directly or indirectly through subsidiaries.

According to Blockdata, Barclays, Citigroup, and Goldman Sachs are among the most active supporters of crypto and blockchain startups, with JPMorgan and BNP Paribas also recognized as serial investors. These investments are part of a wider trend of considerable funding for blockchain businesses, with funding statistics already more than tripling from the previous year.

The increased crypto and blockchain engagement among banks is due to three primary factors: Cryptocurrency companies exploding earnings, legislative improvements, and the growing demand among bank clients for exposure to digital assets.

Crypto custody is the most notable example of where banks are investing. Many people can’t ignore the potential cash streams and necessity of having a strong strategic position in the crypto economy, despite their outspokenness about how awful Bitcoin is, 23 of the top 100 banks in terms of assets under management are developing custody solutions or investing in firms that do.

NYDIG president Yan Zhao remarked in May that the enormous profits of crypto trading behemoths like Coinbase were prompting banks to reconsider their original aversion to cryptocurrency engagement. One of the most ironic developments in the blockchain and cryptocurrency world is that many banks are suddenly attempting to provide these services after years of advising their clients against using cryptocurrency, particularly Bitcoin.

You Must Read: Investment giant Goldman Sachs is expanding its Crypto trading with Galaxy Digital

New to Crypto? Enroll in Cryptocurrency Course at Todayq Education

Share.

Comments are closed.

Copy link
Powered by Social Snap