Global banking reveals massive $10.27 billion investment into Cryptocurrencies

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 Basel Committee on Banking Supervision (BCBS) report $10.27 billion investment in cryptocurrencies


Crypto news today by Cryptocrit

According to a recent report from the Basel Committee on Banking Supervision (BCBS), nineteen North American and European banks have disclosed significant investments in cryptocurrencies, totaling €9.4 billion ($10.27 billion). This represents a growing trend of adoption of cryptocurrencies by traditional financial institutions.

The BCBS, after implementing a new crypto data collection template over the past five years, has revealed the extent of cryptocurrency engagement among its member banks. North American banks are leading with ten entities disclosing their investments, while seven European banks have also reported their exposures.

The investments span various digital currencies, with Bitcoin and Ethereum being the most prominent in these portfolios, accounting for 31% and 22%, respectively. Notably, related investment instruments for Bitcoin and Ethereum constitute an additional 25% and 10%. XRP, another major cryptocurrency, represents €188 million or 2% of the total investment, with two banks holding over half of this exposure and four others nearly 40%.

The banks' portfolios are diversified across several other cryptocurrencies including Polkadot (DOT), Cardano (ADA), Solana (SOL), Litecoin (LTC), and Stellar Lumens (XLM). Stablecoins and tokenized assets are also featured, making up nearly 90% of the reported exposures by these institutions.

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In a significant development for cryptocurrency adoption within traditional banking systems, Banco Santander (BME:SAN) has started facilitating transactions in Bitcoin and Ethereum for clients in Switzerland. This move signals a growing acceptance of digital currencies as legitimate financial instruments among established financial entities.

The BCBS's report comes at a time when interest in cryptocurrencies is growing rapidly. The total market capitalization of cryptocurrencies has surpassed $3 trillion, and there are now over 10,000 different cryptocurrencies in circulation.

The growing adoption of cryptocurrencies by banks is likely to have a number of implications for the financial system. For example, it could lead to increased demand for custody and settlement services for cryptocurrencies. It could also lead to the development of new financial products and services that are based on cryptocurrencies.

The BCBS's report is a valuable step in understanding the growing role of cryptocurrencies in the financial system. It will be interesting to see how this trend develops in the years to come.

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