Financial institutions allocate billions to crypto assets, with XRP gaining prominence among diverse altcoins alongside the dominance of BTC and ETH.
In a noteworthy development within the banking and cryptocurrency domains, 19 major banks spanning North America, Europe, and other global regions have revealed significant investments in diverse crypto assets. As per the latest report from the Basel Committee on Banking Supervision (BCBS), these banks have collectively disclosed crypto asset exposures amounting to €9.4 billion, equivalent to approximately $10.27 billion.
XRP Attracts Significant Recognition
XRP, the well-known cryptocurrency, has notably carved out a substantial presence in the investment portfolios of major banks, as indicated by the BCBS report. Among the diverse range of cryptocurrencies, XRP stands out, constituting approximately 2% of the total exposure reported by these banks.
The BCBS report reveals that banks have allocated around €188 million or $205 million to XRP, positioning it as the third-largest altcoin in their disclosed commitments. This underscores XRP’s growing prominence in the cryptocurrency market.
Bitcoin and Ethereum’s Prevailing Dominance
The BCBS’s discoveries additionally disclose that the majority of banks’ cryptocurrency investments are centered around Bitcoin (BTC) and Ethereum (ETH). These two digital currencies take precedence in the exposure, with BTC making up 31%, and ETH comprising 22%.
Investment instruments mirroring BTC and ETH also constitute a noteworthy share, amounting to 25% and 10%, respectively. This information mirrors the continuous trust in these leading cryptocurrencies and the developing strategies of banks in the realm of digital assets.
Diverse Crypto Assets in the Banking Mix
The report also highlights the presence of several noteworthy cryptocurrencies in the investment portfolios of these financial institutions. Among them are Polkadot (DOT), Cardano (ADA), Solana (SOL), Litecoin (LTC), and Stellar (XLM). While these altcoins constitute smaller percentages in comparison to BTC and ETH, their inclusion underscores the expanding interest and adoption of diverse digital assets within the banking sector.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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