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Attention Nineteen North American and European banks have reported significant investments in cryptocurrencies, totaling €9.4 billion ($10.27 billion), according to the latest findings from the Basel Committee on Banking Supervision (BCBS). The disclosures come as part of a supervisory initiative to monitor crypto-asset exposures within the financial system. The BCBS, after implementing a new crypto data collection template over the past five years, has revealed the extent of cryptocurrency engagement among its member banks. North American banks are leading with ten entities disclosing their investments, while seven European banks have also reported their exposures. The investments span various digital currencies, with Bitcoin and Ethereum being the most prominent in these portfolios, accounting for 31% and 22%, respectively. Notably, related investment instruments for Bitcoin and Ethereum constitute an additional 25% and 10%. XRP, another major cryptocurrency, represents €188 million or 2% of the total investment, with two banks holding over half of this exposure and four others nearly 40%. The banks' portfolios are diversified across several other cryptocurrencies including Polkadot (DOT), Cardano (ADA), Solana (SOL), Litecoin (LTC), and Stellar Lumens (XLM). Stablecoins and tokenized assets are also featured, making up nearly 90% of the reported exposures by these institutions. In a significant development for cryptocurrency adoption within traditional banking systems, Banco Santander (BME:SAN) has started facilitating transactions in Bitcoin and Ethereum for clients in Switzerland. This move signals a growing acceptance of digital currencies as legitimate financial instruments among established financial entities.

Attention Nineteen North American and European banks have reported significant investments in cryptocurrencies, totaling €9.4 billion ($10.27 billion), according to the latest findings from the Basel Committee on Banking Supervision (BCBS). The disclosures come as part of a supervisory initiative to monitor crypto-asset exposures within the financial system.

The BCBS, after implementing a new crypto data collection template over the past five years, has revealed the extent of cryptocurrency engagement among its member banks. North American banks are leading with ten entities disclosing their investments, while seven European banks have also reported their exposures.

The investments span various digital currencies, with Bitcoin and Ethereum being the most prominent in these portfolios, accounting for 31% and 22%, respectively. Notably, related investment instruments for Bitcoin and Ethereum constitute an additional 25% and 10%. XRP, another major cryptocurrency, represents €188 million or 2% of the total investment, with two banks holding over half of this exposure and four others nearly 40%.

The banks' portfolios are diversified across several other cryptocurrencies including Polkadot (DOT), Cardano (ADA), Solana (SOL), Litecoin (LTC), and Stellar Lumens (XLM). Stablecoins and tokenized assets are also featured, making up nearly 90% of the reported exposures by these institutions.

In a significant development for cryptocurrency adoption within traditional banking systems, Banco Santander (BME:SAN) has started facilitating transactions in Bitcoin and Ethereum for clients in Switzerland. This move signals a growing acceptance of digital currencies as legitimate financial instruments among established financial entities.

Disclaimer: Includes third-party opinions. No financial advice. See T&Cs.
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Banks Have $9 Billion in Cryptocurrency Exposure Equating to Roughly 0.01% of Total Risk Exposure A recent study published by the Basel Committee on Banking Supervision (BCBS) explains that the world’s top banks are exposed to around $9 billion worth of cryptocurrencies. The BCBS is a global organization made up of members tied to the world’s central banks and financial institutions from a myriad of jurisdictions. The study, called “Banks’ exposures to cryptoassets – a novel dataset,” was written by secretariat Renzo Corrias. The research aims to create a primary global standard on the “prudential treatment of banks’ [crypto asset] exposures.” “Total [crypto asset] exposures reported by banks amount to approximately €9.4 billion. In relative terms, these exposures make up only 0.14% of total exposures on a weighted average basis across the sample of banks reporting [crypto asset] exposures,” the report written by Corrias details. “When considering the whole sample of banks included in the Basel III monitoring exercise (ie also those that do not report [crypto asset] exposures), the amount shrinks to 0.01% of total exposures.” The BCBS shows that 19 banks worldwide submitted data for the research, and approximately ten financial institutions derived from the Americas. Seven banks stemmed from Europe, and two banks came from the rest of the world. Corrias notes that the banks represent a small group of financial institutions out of the collective 182 banks the BCBS considered for its Basel III monitoring exercise. The crypto asset exposure the banks reported mostly consisted of bitcoin (BTC) which was around 31% of exposures, and ethereum (ETH) which accounted for 22% of exposures. In addition to exposure to USD-backed stablecoins, banks are also associated with crypto assets like xrp (XRP), cardano (ADA), solana (SOL), litecoin (LTC), and stellar (XLM). Corrias explains that the banks’ exposure to crypto is comprised of three different categories which include crypto holdings
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