Global banks have invested over $100 billion in blockchain since 2020, shifting from trading to building digital asset infrastructure.
Traditional banks are no longer standing on the sidelines of the digital revolution. A new report titled Banking on Digital Assets reveals that since 2020, financial institutions have spent more than 100 billion dollars on blockchain and digital asset infrastructure. The report, published by Ripple in conjunction with CB Insights and the UK Centre for Blockchain Technologies, is a major change of gear among the banks, as it involves. The banks are no longer content to trade digital assets but rather develop systems that will help the sector grow over a long-term period.
Global Banks Back 345 Blockchain Startups
The report has examined more than 10,000 investment deals and surveyed 1,800 financial executives around the globe. It points to the attention that the banks are paying to fundamental blockchain technology such as tokenization, custodial digital assets and cross-border payment systems. Such investments are demonstrations that blockchain is not a concept of the future anymore. It is happening at present
Notably, this is in line with the trends in the real world. Transaction volumes within stablecoins are projected to explode to more than 700 billion dollars a month as early as 2025. This leap demonstrates that businesses and people are finding more and more applications to use blockchain-based assets in their daily transactions beyond trading and speculation. In response to this new demand, banks are changing to respond to it.
Large institutions are taking the front seat. Some of the most active investors in blockchain startups include Citigroup, Goldman Sachs, JPMorgan Chase, and Japan SBI Group. In 2020-2024, the world banks invested in 345 blockchain companies. A majority of these were of an early stage, indicating that banks would like to influence the evolution of this emerging ecosystem at the ground level.
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Goldman, Citigroup Lead Bank Deals in Blockchain
Interestingly, Citigroup and Goldman Sachs each led with 18 deals. On the other hand, JPMorgan and Mitsubishi UFJ made 15 investments each. Furthermore, some banks were involved in mega funding with an amount of more than 100 million. As an illustration, 33 of such rounds were participated in by Japan SBI Group and Goldman Sachs. This is a testament to the seriousness of traditional finance in regard to blockchain technology.
The increased government regulation of digital assets gives banks a feeling of safety to proceed. This regulation has helped persuade them to participate in secure blockchains such as digital identity, compliance, and risk administration platforms.
In the meantime, the Ripple report also suggests that some of the financial authority chiefs are of the idea that blockchain will dominate future banking. The survey shows that more than three-fourths of financial executives state that they believe blockchain business operations will be paramount in the future within five years. They view it as a means of enhancing the speed of transactions, reducing costs, and enhancing transparency.
To sum it up, nowadays, instead of trying to get profit out of blockchain, banks worldwide are investing in it in order to modernize their services. This trend shows that blockchain is now a vital part of the global financial system. As a result, with over $100 billion already invested, even more spending is expected in the coming years.
The post Banks Invest Over $100 Billion in Blockchain Since 2020; Ripple appeared first on Live Bitcoin News.
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