BlockData: Looking at the blockchain investment landscape of Standard Chartered, Citi, Goldman Sachs, JPMorgan Chase, etc.

Blockchain market intelligence agency Blockdata publicly listed the 13 banks/investment banks that have invested the most in cryptocurrency and blockchain companies so far in a new report last week. Global banking giants have come to an end one after another, and have developed a keen interest in emerging crypto and blockchain companies. According to Blockdata research, 55% of the world’s top 100 banks invest in the fields of encryption and blockchain.

Well-known platforms Coinbase , Ripple and NYDIG have all received financial support from major banks.

According to data from the analysis company Blockdata, financial institutions are grabbing part of the booming $2 trillion cryptocurrency market, and currently the world’s 13 largest banks have provided approximately $3 billion in funding to cryptocurrency and blockchain companies.

London-based Standard Chartered Bank tops the list with an investment of US$380 million, while London-based rival Barclays is the most active investor in blockchain companies in terms of numbers.

BlockData: Looking at the blockchain investment landscape of Standard Chartered, Citi, Goldman Sachs, JPMorgan Chase, etc.

The following are the details of the investment scale and investment targets of the top 13 banks that represent the investment:

1. Standard Chartered-US$380 million and 6 investments

Standard Chartered Bank’s investment targets include the blockchain network Ripple. According to Coinmarketcap.com, the market value of its XRP token is approximately US$48 billion, making it the sixth largest cryptocurrency by market value. Standard Chartered Bank is also an investor in Cobalt, a trading technology provider based in the United Kingdom.

In May 2021, the New York Department of Financial Services (NYDFS) began to allow Standard Chartered Bank to provide cryptocurrency custody services, and Standard Chartered’s deployment in the crypto field has accelerated significantly. On June 29, Standard Chartered Bank, in cooperation with ICAP and Fidelity Group, launched an encrypted trading platform. On August 8, Zodia Custody, a crypto broker of Standard Chartered Bank, plans to provide services to institutional investors in Ireland.

2. BNY Mellon-US$321 million and 5 investments

The Bank of New York has Fireblocks on its investment roster, which allows financial institutions to issue, move and store cryptocurrencies. Blockdata said that the Bank of New York Mellon has invested the most in the field of encrypted custody, that is, the company pays to manage customers’ digital assets through encrypted custody services. The survey found that among the top 100 banks, 23 have either established their own custody technology or integrated the products of technology providers into their systems.

The Bank of New York Mellon announced its entry into the crypto field in February 2021. In May, news broke that the Bank of New York Mellon had established a cryptocurrency department in Dublin, Ireland, which will provide custody services for different types of assets. On June 30, the Bank of New York Mellon officially stated that it is the first global bank that allows customers to hold, transfer and issue digital currencies. On July 13, Grayscale Investment announced that it had reached a cooperation agreement with the Bank of New York Mellon to provide asset services and ETF services for Grayscale Bitcoin Trust. The agreement will take effect on October 1, 2021.

3. Citibank-279 million US dollars and 14 investments

Citibank, the fourth largest US asset bank, has invested in SETL, and SETL’s ledger technology can be used to transfer cash and other assets.

As early as 2018, Citigroup began to develop encryption products for customers, but in the end, the official still did not have a substantive answer. In recent years, Citi has remained on the sidelines of the cryptocurrency market such as Bitcoin, but from interviews with its internal staff, it can be seen that Citi has always been friendly to cryptocurrency and believes that Bitcoin is the gold of the 21st century.

In June 2021, Citi stated that in view of seeing exciting new developments in cryptocurrency, tokenization and other advancements driven by blockchain technology, it officially established Digital Assets, a new business unit for cryptocurrency and blockchain. Group, to explore more possibilities of cryptocurrency in depth.

4. UBS (UBS)-266 million US dollars and 5 investments

Heavyweight investments by Swiss banks include Axoni, whose technology is used to modernize capital market infrastructure.

In October 2020, Swiss bank Sygnum Bank AG and Japanese financial giant SBI Holdings jointly launched a fund for investing in unlisted stocks and investing in companies using crypto assets (virtual currencies) and blockchain (distributed ledger) technology . The total amount of the fund strives to reach 7 billion yen by 2021.

In 2021, Swiss financial giant UBS (UBS) has taken a big step in the crypto industry. At the end of July, UBS Prime Brokerage Service has begun to provide clearing and settlement services for cryptocurrency exchange-traded products (ETP) to a limited number of clients.

In early August, UBS has joined Broadridge Financial Solutions’ Distributed Ledger Repurchase (DLR) platform because the blockchain platform can achieve significant immediate benefits of reducing risks and operating costs and enhancing liquidity.

5. BNP Paribas-236 million US dollars and 9 investments

The French financial group is working with Digital Asset to develop real-time trading and settlement applications using smart contracts based on the DAML programming language.

BNP Paribas advocates the truth in practice. BNP Paribas announced on September 15, 2020 that the company’s securities department has cooperated with Digital Asset to develop a series of real-time trading and settlement applications using DAML-based smart contracts.

In exploring the field of blockchain technology, BNP Paribas can be said to be at the forefront. On October 7, 2020, BNP Paribas and the crypto wallet provider Curve completed a proof of concept, which aims to improve the security of security token transfers. And BNP Paribas has used ERC-1400 standard security tokens to quickly, securely and transparently transfer on the blockchain, and plans to provide customers with more market-competitive custody products.

6. Morgan Stanley-234 million US dollars, a total of 3 investments

One of its investments is crypto custody company NYDIG, which is a Bitcoin subsidiary of Stone Ridge, a $10 billion alternative asset management company.

Morgan Stanley is the sixth largest financial services company in the United States. However, in the field of blockchain, Morgan Stanley’s participation is at a disadvantage compared to other banking institutions. It is reported that Morgan Stanley has only invested in three companies related to the blockchain field, but it is not known whether there are other layouts in the blockchain field in private.

7. JP Morgan Chase-US$206 million and 8 investments

Ethereum software company ConsenSys has received support from JPMorgan Chase, the largest bank in the United States.

In August 2021, it was reported that JPMorgan Chase had begun cooperating with NYDIG, a New York digital investment group, to sell internally circulating bitcoin funds to private bank customers. However, JPMorgan Chase declined to comment on this matter.

8. Goldman Sachs-204 million US dollars and 8 investments

Its investment list includes Coin Metrics, a provider of blockchain data to institutional clients.

Goldman Sachs began to formally deploy the encryption field in 2021. First, in March, Goldman Sachs announced that it had restarted the cryptocurrency trading department and had begun to provide customers with bitcoin futures and non-deliverable forward futures trading services.

On July 27, Goldman Sachs submitted an application to the U.S. Securities and Exchange Commission (SEC) to submit a “DeFi and Blockchain Stock ETF”. According to the application documents, Goldman Sachs will seek to provide Solactive Decentralized Finance before disbursing fees and costs. and Blockchain Index “closely correspond” to the investment results.

However, at this stage, the specific composition of the index is not yet clear. It only knows that it is related to cryptocurrency and blockchain. Goldman Sachs also mentioned in the application documents that the companies included in the fund are mainly located in developed and emerging markets around the world and in certain developed markets. Is listed and traded on major exchanges including Australia, Canada, France, Germany, Hong Kong, Japan, South Korea, Switzerland, the Netherlands, the United Kingdom and the United States.

9. Mitsubishi UFJ Financial Group (MUFG)-US$185 million and 6 investments

Mitsubishi UFJ Financial Group (Mitsubishi UFJ Financial Group) invested in U.S. cryptocurrency exchange Coinbase, which was listed in April, and Tokyo-based cryptocurrency exchange Bitflyer.

Mitsubishi UFJ Financial Group, with a history of more than 100 years, announced in 2017 that it would launch a cross-border trade data blockchain service with NTT Data, a well-known IT service provider in Singapore.

In 2018, Mitsubishi UFJ Financial Group is experimenting with its own cryptocurrency, Mufg currency. Employees can use Mufg currency to pay at convenience stores.

As of November 2019, the Japanese financial giant Mitsubishi UFJ Financial Group (MUFG) has joined forces with 21 other companies to establish a blockchain alliance to research and develop security token management standards.

10. Dutch Multinational Bank (ING)-170 million US dollars and 6 investments

One investment of this Dutch multinational company is to support the blockchain liquidity management platform HQLAx.

In addition, in January 2019, ING signed a five-year agreement with R3, a blockchain service company, to promote distributed ledger technology to a range of business areas and obtain unlimited numbers for its commercial blockchain platform. Authorization.

In December 2019, the Dutch multinational bank focused on developing products around digital asset custody arrangements, hoping to serve investors by adopting “digital assets”.

11. The Spanish Foreign Bank (BBVA)-167 million US dollars and 5 investments

The Spanish bank’s list includes Covault, whose technology is used to store, share and verify identities.

In April 2018, BBVA became the first global bank to issue loans using blockchain technology.

In December 2018, BBVA and the European Investment Bank Group (EIB) have signed a synthetic asset securitization agreement on blockchain. This financial innovation is a common structural financial technology used by commercial banks in developed countries to transfer credit risk. BBVA has completed a series of pioneering tests, including a syndicated loan with Red Eléctrica, a green bond with Mapfre or a sustainable “Schuldschein” loan with the Madrid community, and several corporate loans with Porsche, Indra, ACS or Repsol.

In December 2020, BBVA has begun to launch a trial that will be its first commercial service for digital asset trading and custody. This new service will be provided through BBVA Switzerland and will make it possible to manage Bitcoin transactions and deposits in this cryptocurrency.

In May 2021, BBVA will provide payment and financing services on Trusple (Ant Group’s global trading blockchain platform).

12. Nomura-US$146 million and 5 investments

Blockchain security company Quantstamp is one of the companies backed by the Bank of Japan. In March 2019, Quantstamp received investment from Nomura, which is developing a blockchain solution for securities trading.

In 2018, Japan’s Nomura Securities announced its investment in the cryptocurrency field. In May 2018, it established Komainu with Ledger and global consultants to develop digital hosting solutions. In October 2019, the company announced that it had signed an agreement on September 24 to invest in LVC, a subsidiary of the Korean Control Line, to use B-share chain technology to develop financial services.

Nomura Securities (Nomura) has also established a cryptographic issuance self-regulatory organization (sro) with five other securities firms.

13. Barclays-US$12 million and 22 investments

The investment list of this British multinational company includes RealBlocks, a technology platform that connects consultants and investors with capital managers.

Barclays was very friendly to digital currency at the beginning. It first participated in the blockchain field in 2017 when it launched the Ethereum technology reconciliation platform with UBS, Credit Suisse and other companies. And despite the tightening of regulations in 2018, Barclays still allows customers to use debit and credit cards to purchase digital currencies.

In March 2018, Coinbase announced that it had obtained a bank account with Barclays, which was also the first cooperation between a major UK bank and a cryptocurrency exchange. In April, Barclays Bank and Goldman Sachs publicly expressed their support for ISDA blockchain derivatives standards. This move is also critical to the development of ISDA blockchain.

In April 2019, Barclays Bank announced its entry into the digital asset custody field. Until 2021, with the exchange of internal personnel and the global supervision of Binance’s encirclement and suppression, Barclays announced that it would stop making payments to Binance through credit/debit cards.

Prior to this time, Barclays’ chief investment officer stated in an interview that Bitcoin’s extreme volatility and poor fundamentals make it unattractive to the company’s investment portfolio. And does this mean that from now on, the pro-cryptocurrency Barclays will completely withdraw.

In addition, among the world’s top 100 banks invested in blockchain companies, the order of investment amount is: Circle (US$711 million), Dianrong (US$649 million), Ripple (US$392.9 million), NYDIG (US$355 million) ), Paxos (US$340 million), Digital Asset (US$26212 million), Fireblocks (US$179 million) and Lukka (US$97.3 million).

BlockData: Looking at the blockchain investment landscape of Standard Chartered, Citi, Goldman Sachs, JPMorgan Chase, etc.

The report writes: In the field of blockchain investment by large banks, the most noteworthy segment is the custody of encrypted assets. Although people talk very bluntly about the bad side of Bitcoin, business organizations cannot ignore the potential sources of income and the strategic position of the crypto economy.

The Blockdata report also analyzes the main reasons why many top banks have begun to provide customers with related encrypted asset services:

1. Compared with many traditional banks, the profit or value of an encrypted asset exchange with a small number of employees has greatly increased. This phenomenon started as early as 2018. At that time, the profit of the leading exchange Binance was US$54 million higher than that of Deutsche Bank, while Binance had only 200 employees, and Deutsche Bank had as many as 100,000; it was just in Nasdaq. The listed Coinbase, its valuation is higher than that of Goldman Sachs, but the number of employees is only 4% of Goldman Sachs.

2. Customers of traditional banks continue to require banks that open accounts to provide mainstream encrypted asset solutions.

3. Since 2020, regulatory regulations in many countries have changed, allowing traditional banks to provide crypto asset custody solutions.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/blockdata-looking-at-the-blockchain-investment-landscape-of-standard-chartered-citi-goldman-sachs-jpmorgan-chase-etc/
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