according to the materials of the site - By BH NEWS
Since 2020, traditional banks have invested over 100 billion dollars in cryptocurrencies and blockchain. These significant investments, highlighted in the report 'Banking on Digital Assets' by Ripple, CB Insights, and the UK Centre for Blockchain Technologies, analyzed more than 10,000 investment deals. The study involved over 1,800 executives from financial companies around the world. Although the sector still faces regulatory and market challenges, efforts to develop services such as custodial services, tokenization, and payment systems are gaining momentum. Traditional banks are moving from speculative activities with cryptocurrencies to strengthening their infrastructure.
How does this affect cross-border payments? The report shows that traditional financial organizations made 345 blockchain-related deals from 2020 to 2024. A significant portion, nearly 25%, of these investments is directed towards infrastructure companies behind blockchain-based settlement and asset issuance platforms, with a priority given to cross-border payments. Additionally, attention is drawn to solutions for cryptocurrency storage, tokenization, and blockchain-based exchanges. Moreover, 65% of bank executives are engaged in custodial services, and more than half prefer stablecoins and tokenized real-world assets.
Despite regulatory hurdles in the US and Europe, the momentum for adopting blockchain technology shows no signs of slowing. Following the collapse of the FTX exchange in early 2024, there was a noticeable surge in investments in blockchain, particularly in traditional financial sectors. Emerging markets, including the UAE, India, and Singapore, quickly adopted this technology, leading to a greater alignment of global capital with these advancements.
Examples cited in the report include HSBC's tokenized gold offering, Goldman Sachs' GS DAP initiative, and SBI's quantum-resistant currency project. However, less than 20% of banks offer cryptocurrency trading or the creation of personal digital wallets.
Organizations intend to use blockchain to improve balance sheet management, enhance liquidity, and gradually phase out outdated messaging exchange infrastructures. Survey results show that 90% of financial company executives expect cryptocurrencies to have a 'significant' or 'very large' impact on the financial sector by 2028. Notably, half of these organizations predict the launch of pilot projects for tokenized bonds or the establishment of settlement layers for central bank digital currencies (CBDCs) and private stablecoins within the next three years.
Key findings from the report:
Financial organizations directed 25% of blockchain investments into settlement and asset issuance infrastructure.
Almost two-thirds of executives are exploring custodial solution opportunities. More than 50% of respondents emphasize the importance of stablecoins and tokenized assets.
Following FTX, there was a surge in blockchain investments focused on traditional financial instruments.
The Ripple report highlights the shift towards tokenizing real assets, which is already ready for implementation. This evolution demonstrates the resilience and forward momentum of the financial sector, underscoring the key role of traditional banks in facilitating the adoption of blockchain and cryptocurrencies worldwide.
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