Traditional Banks Invest $100 Billion in Blockchain
- Traditional banks have invested over $100 billion in blockchain.
- Investment focuses on custody, tokenization, and payment infrastructure.
- Shift from speculative trading to real-world financial applications.
Ripple and CB Insights reported that since 2020, banks have invested over $100 billion in blockchain infrastructure, highlighting traditional finance’s growing focus on digital assets.
This investment signals a pivotal shift towards real-world applications, enhancing blockchain’s role in finance and possibly impacting market strategies and asset deployment.
Traditional banks have invested over $100 billion since 2020 in blockchain infrastructure, according to a Ripple report. The major investment targets custody, tokenization, and payment infrastructure.
Traditional finance is making a decisive move into the digital asset space… Banks and financial institutions are no longer deliberating on its impact but are instead integrating the technology as a foundational component of modern finance. – Ripple Blog
In the report, institutions like J.P. Morgan, Goldman Sachs, and Citigroup are identified. The data indicates a move toward real-world blockchain financial applications and digital asset infrastructure.
The investment is shaping industries by focusing on digital securities, programmable money, and settlement tools. Approximately 25% of investments focus on asset issuance and settlement solutions, impacting stablecoins and Ethereum. Financial sectors find regulatory clarity with US GENIUS Act and EU’s MiCA regulation backing these initiatives. This development boosts institutional involvement and stablecoin adoption, reflecting a long-term industry shift.
The move reflects a shift from speculative trading toward real-world financial applications. This change emphasizes technology integration over deliberation. Banks are integrating blockchain as a foundational component. Financial and regulatory trends indicate potential growth in regulated DeFi and digital asset protocols. With over 345 blockchain-specific deals, this massive financial commitment boosts the use of stablecoins, highlighting Ethereum’s role in this ecosystem.
