Banks Invest $100 Billion in Blockchain Since 2020 Driven by Infrastructure Demand

Banks globally have committed over $100 billion to blockchain technologies since 2020, according to a joint report by Ripple, CB Insights, and the UK Centre for Blockchain Technologies. This surge in investment reflects a strategic pivot from speculative trading toward the development of digital asset infrastructure, driven by a growing consensus among financial leaders that blockchain will reshape the industry. The report analyzed over 10,000 blockchain-related deals and surveyed 1,800 finance executives, revealing that 90% anticipate a significant or massive impact of blockchain and digital assets by 2028.

The investments have primarily targeted custody solutions, tokenization, and payment infrastructure, with a quarter of the total funds allocated to companies specializing in blockchain-based settlement and asset issuance tools. Between 2020 and 2024, 345 blockchain deals were identified, with payment-related infrastructure capturing the largest share of funding, followed by crypto custody and tokenization. Financial institutions such as J.P. Morgan, Citigroup, and Goldman Sachs have led much of the investment activity, participating in over 100 funding rounds. J.P. Morgan, through its Kinexys division, has partnered with major banks on blockchain solutions, while SEB and Crédit Agricole CIB launched the so|bond platform for digital bonds.

Despite ongoing regulatory uncertainties and market volatility, more than two-thirds of surveyed banks plan to roll out digital asset initiatives within the next three years. These initiatives are expected to include the piloting of tokenized bonds, the development of interoperable systems for central bank digital currencies (CBDCs), and the advancement of private stablecoin settlements. Ripple emphasized that the industry is entering the implementation phase of real-world asset tokenization, with institutions like HSBC already deploying blockchain solutions such as its tokenized gold platform.

The shift toward blockchain infrastructure is being driven by the need to modernize cross-border payments, streamline balance sheet management, and reduce reliance on traditional financial systems. J.P. Morgan CEO Jamie Dimon has stated the firm is committed to "reimagining financial services with blockchain as a core enabler," reflecting the broader industry trend. Analysts view the ongoing investment as a sign of blockchain’s maturing role in global finance, with the potential to increase operational efficiency and enhance security across financial systems.

While institutional adoption is accelerating, consumer-facing digital assets remain a lower priority for most banks. Less than 20% currently offer crypto trading or retail wallet services, indicating that the focus remains on backend infrastructure and institutional-grade solutions. The continued development of blockchain-based tools is expected to solidify the technology’s role in the future of finance, with further adoption likely as regulatory frameworks evolve.

Source:

[1] Ripple, CB Insights, and UK Centre for Blockchain Technologies (https://www.coindesk.com/business/2025/08/03/ripple-banks-have-invested-over-usd100-billion-in-blockchain-infrastructure-since-2020)

[2] Yahoo Finance (https://finance.yahoo.com/news/ripple-banks-invested-over-100-121527811.html)

[3] Cointelegraph (https://cointelegraph.com/news/citigroup-jpmorgan-goldman-lead-blockchain-investment-ripple)