More than half of the top 100 banks are major investors in Bitcoin, digital assets, and blockchain-based businesses.
The world’s biggest banks appear to be rapidly boosting their connection with trendy crypto and blockchain firms. They get involved in the industry by financing early and late-stage enterprises and projects.
Blockdata studied and outlined a study on blockchain market intelligence. According to the findings of the study, 55 percent of the top 100 banks by AUM are already interested in the cryptocurrency business.
AUM stands for Assets Under Management, and it is a measure of the market worth of all of a financial institution’s financial assets. This partnership is said to encompass the bank’s indirect and direct investments in cryptocurrencies and decentralised ledger technology, as well as its subsidiaries.
According to blockchain market intelligence analysis, Citigroup, Barclays, and Goldman Sachs are among the top funders of cryptocurrencies and blockchain startups. According to the Blockdata analysis, BNP Paribas and JPMorgan are also long-term investors in young companies.
According to the KPMG research, these investments are part of a larger trend of good support for cryptos and blockchain firms. Their financing levels have already begun to double from what they were in 2020.
According to the Blockdata analysis, crypto custody is the primary aim for banks who enter the crypto market. Almost a quarter of the top 100 banks in terms of AUM are building crypto custody platforms. Otherwise, they support startups that provide digital asset custody services.
Several banks in Asia, Europe, and the United States are developing crypto custody solutions as part of their initial foray into cryptocurrency.
Blockdata, a blockchain industry intelligence company, ascribed the growing bank interest in blockchain and cryptocurrency to three primary issues. They include legislative developments, extremely large earnings for cryptocurrency firms, and a never-ending demand from bank customers for May’s digital assets.