A new report by Ripple and CB Insights indicates that traditional banks are becoming active investors in blockchain startups, reflecting the growing interest of the financial sector in distributed ledger technologies.
Investment Activity of Banks
Between 2020 and 2024, global banks completed 345 investments in blockchain companies, mostly at early stages. Citigroup and Goldman Sachs led the pack with 18 deals each, while JPMorgan and Mitsubishi UFJ followed with 15 investments.
Globally Systemically Important Banks in Blockchain
Global Systemically Important Banks (G-SIBs) accounted for 106 deals, including 14 mega-rounds valued over $100 million. The US and Japanese banks were the key players, but Singapore, France, and the UK also demonstrated notable activity.
Future of Asset Tokenization
According to forecasts, tokenization of real-world assets is expected to be a defining trend, with the total value of such tokens potentially exceeding $18 trillion by 2033. An annual growth rate of 53% is anticipated.
The increase in investments in blockchain startups by traditional banks validates the growing recognition of distributed ledger technologies in the financial sector. With predictions about asset tokenization, the future looks promising.
