Banks Allocate Billions to Crypto Assets, with XRP Emerging as a Key Player
Crypto News – In a significant development within the realms of banking and cryptocurrencies, 19 leading banks spanning North America, Europe, and other global regions have recently disclosed substantial investments in a wide array of crypto assets. According to a recent report by the Basel Committee on Banking Supervision (BCBS), these banks have collectively unveiled a staggering €9.4 billion, approximately equivalent to $10.27 billion, in crypto asset exposures.
XRP Emerges as a Notable Contender
Among the diverse spectrum of cryptocurrencies, XRP has carved out a distinct niche for itself, firmly establishing its presence in the investment portfolios of these prominent banks. The BCBS report underscores that XRP, a major altcoin, represents roughly 2% of the total exposure, amounting to a substantial €188 million or $205 million. This investment stance propels XRP into the position of being the third-largest altcoin among the banks’ reported commitments, shining a spotlight on its burgeoning significance within the crypto market.
Bitcoin (BTC) and Ethereum (ETH) Reign Supreme
The BCBS findings shed light on the fact that the lion’s share of banks’ crypto investments is heavily concentrated in Bitcoin (BTC) and Ethereum (ETH). These two cryptocurrencies dominate the landscape, with BTC accounting for 31% of the exposure and ETH comprising 22%. Investment vehicles mirroring BTC and ETH also command a considerable portion, constituting 25% and 10%, respectively. This data underscores the enduring confidence in these leading cryptocurrencies and illustrates the evolving strategies adopted by banks in the realm of digital assets.
A Diverse Mix of Other Cryptocurrencies
Furthermore, the BCBS report outlines a roster of noteworthy cryptocurrencies that have piqued the interest of these financial institutions. This list includes Polkadot (DOT), Cardano (ADA), Solana (SOL), Litecoin (LTC), and Stellar (XLM), each contributing to the diversified crypto portfolio embraced by these banks. Although their percentages may be smaller in comparison to BTC and ETH, their inclusion signifies a widening interest and acceptance of various digital assets within the banking sector.