€9.4 Billion Invested in Digital currencies by Banks, XRP Emerging as a Favorite
A recent report from the Basel Committee on Banking Supervision (BCBS) has revealed that 19 leading banks spanning North America, Europe, and other regions have collectively invested €9.4 Billion — approximately $10.27 billion— in numerous cryptocurrency assets, with XRP being a favorite between them.
The growing prominence of XRP in these banks’ investment strategies is whole lot of. According to the BCBS report, XRP commands a whole lot of position by constituting about 2% of the total exposure. This translates to €188 Million or $205 Million, positioning XRP as the third- largest altcoin in the banks’ reported commitments.
Nonetheless, the dominant coins in the banks’ cryptocurrency investments remain Bitcoin (BTC) and Ethereum (ETH), accounting for 31% and 22% respectively. The investment vehicles tracking these leading digital currencies likewise play a substantial role, representing 25% for Bitcoin and 10% for ETH.
Wider Acceptance of Digital currencies in Banking
The BCBS findings likewise shed light on other trending digital currencies in the portfolios of these financial institutions, including coins like Polkadot (DOT), Cardano (ADA), Solana (SOL), and Litecoin (LTC). Their inclusion signifies a broadening interest and acceptance of public blockchains within the banking sector, reflecting a dynamic shift in how traditional financial institutions embrace the cryptocurrency market.
Institutional Interest in XRP
According to the BCBS report, XRP has gained institutional interest due to Ripple’s legal victories and expanding banking services. Cryptocurrency institutional inflows soared to $1.32B as digital asset investment products attracted inflows of $176M past week, and XRP saw inflows of $0.5M. These positive inflows indicate a surge in institutional interest in XRP, possibly due to Ripple’s legal victories against the SEC, and the company’s expansion of banking offerings to dozens of countries in the last few weeks.
Hot Take: XRP’s Institutional Rise Drives Significance in Banking Portfolios
The report from BCBS demonstrates the growing significance of digital currencies, particularly XRP, in the investment portfolios of worldwide banking institutions. With €9.4 Billion invested in cryptocurrency assets, including notable exposure to XRP, Bitcoin, and Ethereum (ETH), the report confirms the increasing integration of digital currencies in the traditional banking sector.
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