A new report from Ripple, in collaboration with CB Insights and the UK Centre for Blockchain Technologies, highlights Citigroup, JPMorgan Chase, and Goldman Sachs as leading traditional financial institutions actively investing in blockchain technologies.
Investment of Major Banks in Blockchain
Between 2020 and 2024, global banks participated in 345 blockchain investments, with 33 being mega-rounds. Global systemically important banks (G-SIBs) reported making 106 investments in blockchain firms, including 14 deals exceeding $100 million. Citigroup and Goldman Sachs led with 18 investment deals each, followed by JPMorgan Chase and Japan's Mitsubishi UFJ Financial Group with 15.
Traditional Financial Institutions' Approach
The report notes a preference among banks to invest in or partner with blockchain companies rather than pursue complete acquisitions. The approach to blockchain has evolved from a hesitant stance following previous market downturns. Investment activity declined in 2022 and 2023 after the FTX collapse, but dealmaking saw a rebound in 2024.
Prospects of Grand Changes
The report indicates that the next phase for banks will involve scaling blockchain solutions beyond institutional pilots. Tokenized real-world assets could be worth over $18 trillion by 2033. Even though Tier-1 institutions are making strides, smaller regional banks are also beginning to enter this space through partnerships with fintech companies.
In conclusion, major Wall Street banks continue to make significant investments in blockchain, indicating serious shifts in the financial sector's integration of digital assets.
