Traditional Banks Invest $100 Billion in Blockchain Infrastructure Since 2020

Traditional financial institutions have been accelerating their investment in blockchain and cryptocurrency infrastructure, committing over $100 billion since 2020. A report titled “Banking on Digital Assets,” produced by Ripple in collaboration with CB Insights and the UK Blockchain Technologies Centre, analyzed more than 10,000 investment agreements and surveyed over 1,800 financial executives to reach this conclusion. The report indicates a strategic shift from speculative trading to infrastructure development, with a focus on custody solutions, tokenization, and cross-border payments [1].

Cross-border payments have emerged as a key area of interest, with over a quarter of blockchain investments directed toward infrastructure that supports settlement and asset issuance. Sixty-five percent of surveyed bank executives are actively exploring custody services, while more than half prioritize stablecoins and tokenized real-world assets. The report highlights examples such as HSBC’s tokenized gold platform and Goldman Sachs’ GS DAP instrument, underscoring the growing practical applications of blockchain in traditional finance [1].

Despite regulatory uncertainties and market volatility, investment in blockchain technologies has continued to rise. Ripple noted a peak in investment from traditional finance institutions during the first quarter of 2024, even in the wake of the FTX exchange collapse. Emerging markets such as the UAE, India, and Singapore have played a significant role in this momentum, contributing to a broader global shift toward blockchain adoption. Institutions are increasingly viewing blockchain not as a threat but as a complementary tool to enhance financial systems and streamline operations [1].

Survey results suggest that 90% of finance leaders believe cryptocurrencies will have a “significant” or “very large” impact on finance by 2028. Half of the institutions surveyed anticipate launching tokenized bond pilots or developing settlement layers compatible with central bank digital currencies (CBDCs) and stablecoins within the next three years. These developments reflect a broader strategic commitment to integrating blockchain into core financial services [1].

Meanwhile, major banks, including JPMorgan Chase, Citigroup, and Japan’s SBI Group, have become key supporters of blockchain startups, indicating a broader institutional embrace of decentralized technologies. Ripple emphasized that these investments demonstrate the tokenization of real-world assets is no longer just theoretical but is moving into practical implementation [1].

The industry is also seeing increased collaboration between traditional finance and fintech firms, driven by a shared recognition of blockchain’s potential to revolutionize financial services. Coinbase, for instance, has continued to innovate in its product offerings to meet user demand, highlighting the importance of making digital assets more accessible and user-friendly. These efforts are critical for the mainstream adoption of crypto and blockchain technologies [1].

While regulatory challenges persist—particularly in regions where policies have introduced uncertainty for the crypto sector—financial institutions remain committed to leveraging blockchain for efficiency and innovation. This continued investment and collaboration signal a pivotal phase in the evolution of digital assets and their integration into traditional financial systems [1].

Sources:

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