Cryptocurrency is gaining traction in the banking sector. As Wells Fargo introduces itself to professionally managed cryptocurrency funds, we take a look at the largest crypto investments that banks have made so far.
On the 4th of August, 2021, Blockdata compiled all of the assets that banks hold. Here are the top five:
1. Standard Chartered
By quite a long way, Standard Chartered has invested the largest amount of money into crypto out of any bank in the world. They currently have six investments in different companies such as Ripple, Cobalt, Dianrong, Metaco, and Linlogis, totaling $380 million.
2. BNY Mellon
BNY is in second place in the runnings for top bank-crypto investments with $321 million in five different investments, including Fireblocks, HQLAx, R3, and Fnality International. In an article BNY published in 2019, they stated that:
A number of crypto startups admit that the centralized model of crypto-exchanges was a necessary first step to develop the market, but that the next evolution will come from decentralized exchanges.
Even though Citibank, the New York giant bank, has fourteen investments, including HQLAx and R3, as BNY have, too, in crypto to date, they seem to be a little more reserved in how much they put into each. However, their total investments figure, $279 million, is still not a low number by anyone’s standards.
Furthermore, Citi is considering launching a crypto service due to their client interest increases.
UBS, a wealth management bank from Zurich, has only five cryptocurrency investments at the time of publication. However, like Citibank and BNY Mellon, they include R3, Axoni, and Fnality international.
The total investment to date is around $266 million, and as with other banks, it looks like they have invested due to client pressure, and even some fear of missing out.
5. BNP Paribas
BNP Paribas is in fifth place with total investments into the cryptocurrency world with a total of $236 million spread over nine investments. They also consider HQLAx and R3 some of the best companies to invest in.
In an article published in 2016, BNP Paribas expressed that they saw potential in Bitcoin from as far back as 2011, which is a surprise, considering the apparent dislike many banks have for cryptocurrency.