Important Ripple (XRP) Revalation: Some Banks Are Stacking
TL;DR
BCBS Report: 19 banks invested €9.4 billion in crypto, with XRP (2% of total, €188 million) emerging notably alongside dominant BTC (31%) and ETH (22%).
Other Cryptocurrencies: Includes DOT, ADA, SOL, LTC, showing wider blockchain acceptance in banking.
XRP’s Rise: Gains institutional interest due to Ripple’s legal victories and expanding banking services.
BTC, ETH, and XRP Make Up For 90% of Exposures
A recent report from the Basel Committee on Banking Supervision (BCBS) has unveiled that 19 leading banks spanning North America, Europe, and other regions have collectively invested €9.4 billion —approximately $10.27 billion— in various crypto assets, with XRP being a favorite.
The growing prominence of XRP in these banks’ investment strategies is noteworthy. According to the BCBS report, XRP commands a significant position by constituting about 2% of the total exposure. This translates to €188 million or $205 million, positioning XRP as the third-largest altcoin in the banks’ reported commitments.
However, while XRP gains attention, it might not be surprising that Bitcoin (BTC) and Ethereum (ETH) remain the dominant coins in the banks’ crypto investments. BTC accounts for 31%, followed closely by ETH at 22%. Investment vehicles tracking these leading cryptocurrencies also play a substantial role, representing 25% for BTC and 10% for ETH.
The BCBS findings also shed light on other popular cryptocurrencies in the portfolios of these financial institutions, including coins like Polkadot (DOT), Cardano (ADA), Solana (SOL), and Litecoin (LTC). While having smaller percentages, their inclusion signals a broadening interest and acceptance of public blockchains within the banking sector, reflecting a dynamic shift in how traditional financial institutions embrace the crypto market.
Why Are Institutions So Keen on XRP?
The findings by the BCBS offer insights into how global banking institutions adapt and strategically navigate the field of cryptocurrencies, and XRP has become an institution darling.
As CryptoPotato reported, crypto institutional inflows soared to $1.32B as digital asset investment products attracted inflows of $176M last week, per a report from CoinShares.
XRP saw inflows of $0.5M, as per the report, while coins like Cardano (ADA) and Litecoin (LTC) also saw positive inflows, with $0.8M and $0.4, respectively. XRP’s institutional interest has skyrocketed amid Ripple’s legal victories against the SEC, all while the company has expanded its banking offerings to dozens of countries in the last few weeks
The post Important Ripple (XRP) Revalation: Some Banks Are Stacking appeared first on CryptoPotato.
Filed under: Bitcoin - @ November 21, 2023 6:08 am