Since early 2020, traditional banks have invested over $100 billion in cryptocurrency and blockchain initiatives. Studies indicate that this sector continues to evolve despite existing challenges.
Impact on Transactions and Payments
According to the report, from 2020 to 2024, traditional financial institutions engaged in 345 blockchain-related deals. Nearly 25% of these investments are targeting companies developing infrastructure for settlement and asset issuance, with a focus on cross-border transactions.
Regulatory Barriers and Their Influence
Despite regulatory hurdles in the US and Europe, interest in blockchain technologies remains strong. Following the collapse of the FTX exchange in early 2024, there has been a surge in blockchain investments, particularly from the traditional finance sector.
Future Prospects of Blockchain and Cryptocurrency
Survey results indicate that 65% of banking executives are exploring custody solutions, while over half emphasize the importance of stablecoins and tokenized assets. Tokenized bond pilots and the establishment of settlement layers for central bank digital currencies are expected within the next three years.
The report highlights the critical role of traditional banks in accelerating the adoption of blockchain and cryptocurrencies, noting that the transition to tokenizing real-world assets is becoming increasingly relevant.
