According to reports, 55% of the world’s top 100 banks have crypto and blockchain risk exposure

According to reports, global banking giants are increasing their participation in emerging crypto and blockchain companies by providing early and late funding for projects and companies in the industry.

according to Research Provided by the blockchain market intelligence agency Blockdata, 55 of the top 100 banks in terms of assets under management (AUM) have some form of exposure to this new technology. According to reports, this involvement spans direct and indirect investments in crypto and decentralized ledger technology companies by the bank itself or through its subsidiaries.

Blockdata’s research lists Barclays, Citigroup, and Goldman Sachs as the most active supporters of crypto and blockchain companies, and JPMorgan Chase and BNP Paribas have also been identified as serial investors in emerging fields.

These investments are part of a larger trend of strong support for blockchain startups, and the funding figures are already twice the amount recorded in 2020. According to a KPMG report.

Research also shows Crypto custody is the main focus of banks Delve into the encryption space. In fact, among AUM’s top 100 banks, nearly a quarter are either developing crypto custody solutions or supporting startups that provide custody services for digital assets.

As previously reported by Cointelegraph, several banks in the United States, Asia, and Europe are Establish an encrypted custody platform As part of their initial foray into cryptocurrency.

related: Cryptocurrency custody gives commercial banks a firm foothold in the market

Blockdata attributed the increasing involvement of banks in encryption and blockchain to three main factors-the soaring profits of cryptocurrency startups, regulatory progress, and the growing demand for digital asset exposure by bank customers.

As early as May, NYDIG President Zhao Yan said that the huge revenues of crypto trading giants such as Coinbase are making banks Revisit their initial silence about cryptocurrency participation.

Although the teams working for these major cryptocurrency companies are significantly smaller, this huge revenue potential still exists.

As of this writing, Coinbase is valued at US$58.09 billion, which is almost half that of Goldman Sachs, the world’s 13th largest bank, even though the latter employs only about 4% of its employees.