It’s been just revealed that there’s a new report from the blockchain firm Blockdata that suggests the fact that more than half of the world’s biggest banks are getting exposure in crypto and blockchain companies.
The firm said that out of the 100 biggest banks by assets under management (AUM), 55 of them have already invested in crypto or blockchain-related business. The investments are direct or via subsidiaries.
Crypto investments attract almost a quarter of the top 100 banks
The firm said that investment opportunities in the crypto custody space had attracted nearly a quarter of the top-100 banks.
“The most noteworthy example of where banks are investing is crypto custody. Despite being very vocal about how bad Bitcoin supposedly is, many can’t ignore the potential revenue streams and importance of having a strong strategic position in the crypto economy,” according to official notes.
The notes continued and said: “Based on our findings, 23 of the top 100 banks by assets under management are building custody solutions, or investing in the companies that provide them.”
Three main developments convince banks
Blockdata also explained that three main developments convinced many of the top banks to start providing crypto-related services to clients.
“ Seeing cryptocurrency exchanges with a fraction of their staff become substantially more profitable or valuable than many banks. This started as early as 2018, when Binance, the leading exchange at the time, recorded $54 million more profit than Deutsche Bank, with just 200 vs 100,000 employees. More recently, Coinbase’s valuation was higher than Goldman Sachs, with just 4% of their employees,” according to notes.
“ Countless requests from their clients to provide Bitcoin solutions.  A change in regulations in 2020 that allows banks to offer crypto custody solutions.”
The mass adoption of digital assets has been one of the main goals of the crypto space. Stay tuned for more news from the crypto space.