XRP Grabs Attention
Out of a variety of cryptocurrencies, XRP has caught the eye of 19 major banks. According to a recent Basel Committee on Banking Supervision (BCBS) report, these banks collectively have €9.4 billion, approximately $10.27 billion, in crypto asset exposures, with XRP constituting about 2% of the total exposure, amounting to €188 million or $205 million, making XRP the third largest altcoin in the banks’ reported commitments.
Bitcoin and Ethereum Dominate
The BCBS’s findings reveal that most banks’ crypto investments are concentrated in Bitcoin (BTC) and Ethereum (ETH), with BTC accounting for 31% of the exposure and ETH for 22%. Investment vehicles that track BTC and ETH also represent a significant portion, comprising 25% and 10%, respectively.
Other Cryptocurrencies in the Mix
Aside from Bitcoin and Ethereum, the report lists other notable cryptocurrencies that have attracted attention from these financial institutions, such as Polkadot (DOT), Cardano (ADA), Solana (SOL), Litecoin (LTC), and Stellar (XLM). While these have smaller percentages compared to BTC and ETH, their inclusion indicates a broader interest and acceptance of various digital assets within the banking sector.
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Hot Take: The Future of Crypto in The Banking Sector
This move by prominent banks to invest in major cryptocurrencies signals a significant shift in the traditional banking system. The increasing acceptance and investment in digital assets show a growing confidence in the future of crypto, and banks are adapting their strategies to keep up with the evolving financial landscape.
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