Banks Invest Billions of Dollars in Crypto
A significant wave has emerged in the financial landscape as 19 major banks, spanning regions from North America to Europe, have publicly disclosed substantial investments in the realm of cryptocurrencies.
Recent data from the Basel Committee on Banking Supervision (BCBS) reveals a collective exposure of €9.4 billion (approximately $10.27 billion) in various crypto assets among these institutions.
The BCBS report indicates that XRP accounts for about 2% of the overall exposure, amounting to €188 million or $205 million. This significant investment marks XRP as the third-largest altcoin among the banks’ disclosed commitments, signaling a notable shift in the crypto market.
The report further unveils that the bulk of these banks’ crypto investments revolve around Bitcoin (BTC) and Ethereum (ETH). BTC holds the lion’s share with 31% of the exposure, closely followed by ETH at 22%. Investment vehicles tracking BTC and ETH also represent a considerable portion, making up 25% and 10%, respectively.
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This data underlines the continued confidence in these leading cryptocurrencies and reflects the evolving strategies of banks in navigating the digital asset landscape.
Apart from Bitcoin and Ethereum, the BCBS report sheds light on other cryptocurrencies that have captured the attention of these financial giants. Notable mentions include Polkadot (DOT), Cardano (ADA), Solana (SOL), Litecoin (LTC), and Stellar (XLM).
Despite their relatively smaller shares compared to BTC and ETH, their inclusion signifies a diversifying interest and growing acceptance of a spectrum of digital assets within the banking sector.