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 ETH -0.80% . 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.
