Traditional Banks Invest $100 Billion in Blockchain Infrastructure Since 2020

Traditional financial institutions have invested over $100 billion in blockchain infrastructure between 2020 and 2024, according to a joint study by Ripple, CB Insights, and the UK Centre for Blockchain Technologies titled Banking on Digital Assets. The report analyzed more than 10,000 blockchain deals and surveyed over 1,800 financial institution executives globally, highlighting a significant shift toward digital finance by major banks [1].

Banks participated in 345 blockchain-related deals over the period, with the largest share of interest directed toward payment infrastructure, followed by cryptocurrency storage, tokenization, and currency transactions on the blockchain. Approximately 25% of investments targeted infrastructure supporting settlements and digital asset issuance. The greatest growth was observed in emerging markets, particularly the UAE, India, and Singapore, which are outpacing the U.S. and Europe in adoption rates [1].

Among the key findings, 65% of banks are exploring digital asset storage options, with stablecoins and tokenized real-world assets (RWAs) as top priorities. Over 90% of surveyed executives believe that blockchain and digital assets will have a significant or massive impact on the financial sector by 2028. Examples of new technology implementation include HSBC’s tokenized gold platform, Goldman Sachs’ GS DAP blockchain settlement tool, and SBI Group’s developments in quantum-resistant digital currency [1].

Consumer-facing digital assets remain a secondary focus, with less than 20% of respondents offering crypto trading or wallet services for retail clients. Instead, banks are prioritizing infrastructural changes to modernize international payments, optimize balance sheet management, and reduce reliance on legacy systems. Ripple noted that “the tokenization of real assets is moving into the implementation phase” [1].

More than two-thirds of surveyed banks expect to launch digital asset initiatives within the next three years, including pilot projects with tokenized bonds and infrastructure for settlements using central bank digital currencies (CBDCs) and private stablecoins. Analysts suggest that institutional adoption is now being driven by a gradual transformation of global financial infrastructure rather than market hype or speculative retail interest [1].

Blockchain investment from traditional finance reached a peak after the FTX collapse in Q1 2024, accelerating momentum in areas such as trade infrastructure, custodial services, and tokenization. Large-scale deals included 33 funding rounds exceeding $100 million, with Brazil’s CloudWalk securing over $750 million from Banco Itaú and Germany’s Solaris raising more than $100 million from SBI Group [1].

Global Systemically Important Banks (G-SIBs) participated in 106 deals, including 14 large funding rounds. The U.S. and Japan were the most active, with Singapore, France, and the UK also playing key roles. The ripple effect of these investments has driven over 10,000 deals across four years, signaling a broader trend of institutional engagement with blockchain [1].

Regulatory progress has also supported this momentum, with the U.S. introducing the Stablecoin National Innovation and Guidance Act (GENIUS Act) and the EU finalizing the Crypto Asset Markets Regulation (MiCA). These frameworks aim to provide clearer legal structures for digital asset activities [1].

Stablecoins have emerged as a key driver of blockchain adoption, with Citigroup reporting stablecoin transaction volumes reaching $650–700 billion per month in early 2025. Many banks are now developing their own stablecoins to offer more programmable and less volatile forms of money [1].

Looking ahead, tokenization is expected to be the next major trend. Ripple and the Boston Consulting Group forecast that tokenized real assets could reach $18 trillion by 2033, growing at a 53% compound annual rate [1].

The data underscores that traditional financial institutions are no longer merely observing the blockchain space—they are actively investing, shaping, and integrating it into the future of finance.

Source: [1] Banking Giants Pump $100 Billion into Blockchain Startups ... (https://coincodex.com/article/71016/banking-giants-100-billion-investment-blockchain-2020-2024/)