Ripple’s latest report reveals that traditional financial institutions have poured over $100 billion into blockchain infrastructure since 2020. This substantial investment marks a significant shift in the financial landscape, suggesting that digital assets are no longer just a speculative play but a cornerstone of future finance.
Banks Bet Big on Blockchain
According to the report titled “Banking on Digital Assets,” a collaboration between Ripple, CB Insights, and the UK Centre for Blockchain Technologies, over 10,000 blockchain deals were scrutinized, with insights gathered from more than 1,800 global finance leaders. The findings indicate a palpable momentum among banks worldwide, with 345 blockchain deals executed from 2020 to 2024. The report underscores a strategic focus on payment-related infrastructure, followed by crypto custody, tokenization, and on-chain foreign exchange.
“What’s happening here is a fundamental transformation,” said an industry insider who participated in the study. “Banks are not just dipping their toes; they’re diving in headfirst, especially in areas like custody and tokenization.” This trend aligns with recent developments where JPMorgan & Coinbase Team Up: Crypto From Points, Bank-Linked Wallets Coming, highlighting the growing collaboration between traditional banks and crypto platforms.
Infrastructure Over Speculation
The report highlights that more than 90% of finance executives foresee a “significant” or “massive” impact of blockchain and digital assets on finance by 2028. Yet, the emphasis, they say, is on infrastructure rather than consumer speculation. Most banks are prioritizing projects like HSBC’s tokenized gold platform and Goldman Sachs’ GS DAP for blockchain settlements. Meanwhile, SBI’s advancements in quantum-resistant digital currency exemplify the broader industry trend towards innovation over speculation.
Interestingly, less than 20% of banks are focusing on consumer-facing digital assets such as crypto trading or retail wallets. Instead, the allure lies in modernizing cross-border payments and streamlining balance sheets. It’s a pragmatic approach, aiming to replace aging financial systems with more efficient, blockchain-based solutions. This shift is further emphasized by Coinbase’s ambition to become an ‘Everything Exchange,’ as detailed in Coinbase Pushes Toward ‘Everything Exchange’ with Bitcoin Buy and Tokenized Assets.
“Real-world asset tokenization is no longer just a talking point—it’s happening,” Ripple’s report states emphatically. Though regulatory uncertainty lingers, over two-thirds of the banks surveyed plan to launch digital asset initiatives within the next three years.
The Road Ahead: Opportunities and Challenges
Despite the recent turbulence in crypto markets, the report argues that traditional finance’s engagement with blockchain is accelerating. In fact, investments in blockchain hit a post-FTX high in the first quarter of 2024. Emerging markets, particularly the UAE, India, and Singapore, are spearheading this rapid transformation, outpacing even the U.S. and Europe.
Yet, skepticism remains. Will these investments translate into tangible improvements in global finance, or are they merely a hedge against being left behind? The shift from hype-driven cycles to infrastructural change raises questions about the sustainability of this trend.
For blockchain firms and infrastructure providers, the message is clear: the next wave of adoption hinges not on hype but on the silent, profound transformation of financial systems. It’s a game of patience and precision, where the real winners will be those who can integrate seamlessly with the existing financial ecosystem.
As we move forward, the banking sector’s commitment to blockchain could redefine the contours of global finance. But as with all paradigm shifts, it raises a slew of questions that only time will answer. Will regulatory environments adapt quickly enough to keep pace? Can banks maintain momentum amid market volatility? The answers, while not yet clear, will shape the future of finance in the years to come.
Source
This article is based on: Ripple: Banks Have Invested Over $100 Billion in Blockchain Infrastructure Since 2020
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
