Traditional banks lead in blockchain investments: Citi, JPMorgan, Goldman Sachs, and SBI Group at the forefront

Traditional financial institutions such as Citigroup, JPMorgan Chase, Goldman Sachs, and SBI Group have emerged as leaders in supporting blockchain startups. The banks collectively participated in 345 investments from 2020 to 2024, with a focus on early-stage financing. Citigroup and Goldman Sachs led the industry with 18 transactions each, followed by JPMorgan Chase and MUFG with 15 investments each. The funds mainly flowed to companies specializing in transaction infrastructure, tokenization, custody, and payment solutions.

Traditional financial institutions such as Citigroup, JPMorgan Chase, Goldman Sachs, and SBI Group have emerged as leaders in supporting blockchain startups. Between 2020 and 2024, these banks collectively participated in 345 investments, with a focus on early-stage financing. Citigroup and Goldman Sachs led the industry with 18 transactions each, followed by JPMorgan Chase and MUFG with 15 investments each [2].

The funds primarily flowed to companies specializing in transaction infrastructure, tokenization, custody, and payment solutions. Mega-rounds, deals worth $100 million or more, were a key focus, with banks contributing to 33 such rounds during the four-year window [2]. Notable examples include CloudWalk in Brazil and Solaris in Germany, which secured significant funding from Banco Itaú and SBI Group, respectively [2].

Global Systemically Important Banks (G-SIBs), a group of financial institutions with significant economic weight, accounted for 106 deals, including 14 mega-rounds valued at over $100 million each [2]. The report by Ripple in partnership with CB Insights and the UK Centre for Blockchain Technologies indicates that over $100 billion was poured into blockchain startups between 2020 and 2024 across more than 10,000 deals globally [2].

The survey of over 1,800 global finance leaders found that 90% believe blockchain and digital assets will have a "significant or massive" impact on the industry within three years [2]. This momentum is supported by regulatory developments such as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS Act) in the US and Markets in Crypto-Assets (MiCA) in the EU, which provide a clearer framework for digital asset operations [2].

Stablecoins and tokenization are expected to be defining trends in the coming years. According to a Citi report, stablecoin volumes hit $650–$700 billion per month in Q1 2025, and more banks are launching their own stablecoins to offer programmable money without exposure to volatility [2]. Tokenized real-world assets could exceed $18 trillion by 2033, with a compound annual growth rate of 53% [2].

The shift towards blockchain technology is not just speculative but infrastructural. Traditional banks are investing in blockchain to modernize cross-border payments, streamline balance sheet management, and reduce reliance on legacy systems. Despite regulatory uncertainty and market volatility, the integration of blockchain technology is accelerating, with more than two-thirds of surveyed banks expecting to launch a digital asset initiative within the next three years [2].

References:
[1] https://www.ainvest.com/news/bank-america-integrates-ripple-rlusd-modernize-payment-systems-2508/
[2] https://www.tradingview.com/news/cointelegraph:76e69d5de094b:0-citigroup-jp-morgan-goldman-sachs-lead-tradfi-s-blockchain-charge-ripple/
[3] https://www.coindesk.com/business/2025/08/03/ripple-banks-have-invested-over-usd100-billion-in-blockchain-infrastructure-since-2020