Over half of the world's biggest banks have exposure to crypto and blockchain companies, according to a new report from blockchain research firm Blockdata.
The firm reports that 55 of the 100 biggest banks by assets under management (AUM) are investing in crypto and blockchain businesses, directly or through subsidiaries.
A detailed breakdown of crypto and blockchain investments by banks is also provided by Blockdata as of the month of July.
Barclays Bank has invested in 22 Crypto and blockchain firms, followed by Citigroup with 14 investments, French global banking group BNP Paribas with 9. Goldman Sachs and JPMorgan Chase with 8 respectively.
Nearly a quarter of the top-100 banks have been attracted to crypto custody opportunities, according to the analytic firm owned by CB insights.
Although many of these brands criticize Bitcoin as it is, they cannot ignore the possible revenue streams or the importance of having a strong strategic position in the crypto economy.
According to Blockdata data, 23 of the top 100 banks by assets under management maintain Crypto custody or invest in companies that do.
Three main developments have also convinced many top banks to offer their clients crypto-related services, according to the blockchain analytics firm.
a. Witnessing crypto exchanges with a fraction of their staff become substantially more valuable or profitable than many banks. Despite having just two hundred employees compared to about a hundred thousand at Deutsche Bank, Binance, the world’s biggest crypto exchange at that time, posted a $54 million profit increase. Just 4% of employees of Goldman Sachs work at Coinbase, yet the company's valuation was higher.
b. Numerous requests for Bitcoin solutions from their clients.
c. Regulatory changes that allowed banks to provide crypto custody solutions since last year.
It is probably one of the most ironic aspects of the blockchain and cryptocurrency space that banks are now offering these services to their customers after years of warnings against the use of cryptocurrency.