Over half of the 100 largest banks in the world by assets under management reportedly have exposure to cryptocurrency and blockchain technology through projects in the space, according to a newly published report.
The report, published by Blockdata, first reported by Cointelegraph, reveals global banking giants have been increasing their involvement in the cryptocurrency space through early- and late-stage funding of projects and business in the industry. It details 55 of the top 100 banks have exposure to the space.
These financial institutions’ involvement in the cryptocurrency space reportedly encompasses direct and indirect investments made by the institutions themselves or through subsidiaries. The report names Barclays, Citigroup, and Goldman Sachs among the most active in the space, followed by JPMorgan and BNP Paribas.
Their backing is part of a larger trend that has been seeing leading firms in the cryptocurrency space raise record amounts in funding rounds. Blockdata’s research points to cryptocurrency custody solutions being a major target for financial institutions.
The firm attributed these institutions’ growing involvement in the space to three main factors that include skyrocketing profits from cryptocurrency startups, regulatory advancements, and increasing demand for exposure to digital assets among their customers.
Demand for exposure to the cryptocurrency space grew as the prices of most top cryptocurrencies jumped earlier this year, with bitcoin hitting a new all-time high near $64,000. The cryptocurrency then plunged to $30,000 before recovering and moving back to $45,000.
Despite the fall Tom Lee, managing partner at Fundstrat Global Advisors, has revealed he sees a bitcoin price target of $100,000 by the end of the year as “pretty reasonable,” as he expects equities markets to rally when COVID-19 cases start dropping in the United States.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.