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.