KPMG reports that investment in encryption and blockchain has doubled in 2020

A new report states that crypto and blockchain investments continue to grow due to increasing investor interest Report From the Big Four accounting firm KPMG.

The research is titled “Pulse of Fintech in the First Half of 2021” and covers global investment activities in different financial technology verticals in the first half of this year. It details the 2,456 investment transactions that took place between January and June, valued at 98 billion U.S. dollars. According to the report, one of the main fintech trends in 2021 is the explosive growth of investment in encryption and blockchain.

There were 548 investment activities in the first six months of 2021, including venture capital, private equity, and mergers and acquisitions in the blockchain and cryptocurrency sectors. The total investment in the first half of this year was US$8.7 billion, which is already twice the total amount of 580 investment transactions in 2020, valued at US$4.3 billion.

Companies that have raised more than $100 million in financing rounds, including Blockchain, Paxos, Blockchain.com and name, Driving the growth of investment.

“Cryptocurrency and blockchain are exploding globally,” said Anton Ruddenklau, KPMG’s global financial technology co-head, adding:

“A lot of things are happening in this field now, between the eCNY project running in China, Facebook’s Diem and some ecosystem projects-not to mention all the different trading platforms to raise funds. Digital currencies and virtual assets are a big deal. Topic. I think cryptocurrency will become a popular ticket for investors for at least the rest of this year.”

The study pointed out that increased investor awareness is a key driver of investment growth. Investors now “not only have a better understanding of crypto assets, but also a better understanding of the operations and procedures of crypto-from custody and storage to warehousing, as well as the competitiveness and maturity of service providers.”

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KPMG predicts in the report that the field of cryptocurrency will continue to mature, and the distinction between cryptocurrency and blockchain technology will become stronger. Non-fungible tokens (NFT) is a focus of the first half of the year, and it will promote the development of cryptocurrency exchanges in the form of a trading platform focusing on NFTs.

The report expects further attention to the regulatory framework for the rest of this year. If India regulates cryptocurrency as an asset class in the second half of 2021, India will affect the entire ecosystem.