Traditional banks have invested over $100 billion in cryptocurrency and blockchain since 2020. A Ripple report highlights significant trends in financial infrastructure investments.
Focus on Cross-Border Payments
According to the ‘Banking on Digital Assets’ report, from 2020 to 2024, traditional financial institutions have been involved in 345 blockchain agreements, with approximately 25% of these investments directed towards companies providing infrastructure for settlements and asset issuance, particularly in cross-border payments.
Regulatory Challenges Do Not Deter Investments
The report notes a surge in blockchain investments from traditional finance sources in the first quarter of 2024, even following the collapse of the FTX exchange. While regulatory caution persists in the US and Europe, emerging markets like the UAE, India, and Singapore have accelerated their adoption, bolstering the orientation of global capital.
Key Metrics and Examples
The report highlights examples such as HSBC’s tokenized gold platform, Goldman Sachs’ GS DAP instrument, and SBI’s quantum-resistant currency initiative. However, less than 20% of banks offer cryptocurrency trading or individual wallets.
Thus, traditional banks continue to invest actively in cryptocurrency and blockchain despite regulatory challenges, indicating sustained interest in new financial technologies.
