Banks own a total of just $9.4 billion in crypto

Banks own a total of just $9.4 billion in crypto

According to a new study by the Basel Committee on Banking Supervision, an international organization that sets regulatory standards in banking, only 19 of the 182 banks overseen by the Committee say they own cryptocurrencies. Overall, the assets owned should only amount to 9.4 billion US dollars.

To explain: This corresponds to just under 0.14% of the risk-weighted asset allocation of the 19 banks concerned. Added together across all 182 banks under the Basel Committee’s oversight, cryptocurrencies would account for just 0.01% of total assets. Two banks alone account for more than half of the stated crypto assets, while four other banks together account for around 40% of the remainder. Among the 19 banks working with cryptocurrencies, 10 are from the US, seven from Europe and two from the rest of the world.

The breakdown by crypto investment products is quite one-sided, with Bitcoin (BTC) accounting for 31%, Ethereum (ETH) for 22% and derivatives of Bitcoin and Ethereum together for 35%. The rest of the distribution among altcoins is as follows: Polkadot (DOT) (2%), XRP (2%), Cardano (ADA) (1%), Solana (SOL) (1%), Litecoin (LTC) (0 .4%) and Stellar (XLM) (0.4%). Of banks’ crypto assets, 50.2% are held for purposes such as custody, wallet services or insurance services, while 45.7% are estimated for clearing or market making. Only 4.2% of crypto is used for lending or borrowing.

However, the Basel Committee emphasizes that the results of the study should be viewed “with some caution” as it is difficult to assess how accurately banks actually reported their crypto assets. Ironically, the committee itself previously recommended that banks limit their investments in the volatile cryptocurrencies to no more than 1% of their total assets.

Related posts
All Comments
Banks own a total of just $9.4 billion in crypto There are no comments yet! You can make the first comment.
Leave a Comment