World’s Largest Banks Exposed to $9 Billion in Crypto Assets, Basel Study Shows – Bitcoin News

A first-of-its-kind study released by the Basel Committee on Banking Supervision details the exposure of the world’s largest financial institutions to approximately 9.4 billion euros ($9 billion) in crypto assets. The research paper written by Basel Committee Secretariat Renzo Corrias further explained that of the total exposure of all banks, cryptocurrency exposure is estimated to be around 0.01% of total exposure.

Banks have $9 billion in cryptocurrency exposure, roughly 0.01% of total exposure

recent study An article published by the Basel Committee on Banking Supervision (BCBS) explained that the world’s top banks are exposed to around $9 billion worth of cryptocurrencies. BCBS is a global organization made up of members from countless jurisdictions linked to the world’s central banks and financial institutions.

World's Largest Banks Face $9 Billion in Crypto Assets, Basel Study Shows

The study, titled “Banks’ Exposure to Crypto Assets – A Novel Dataset,” was authored by Secretariat Renzo Corrias.The study aims to establish a major global standard for “prudential treatment of banks” [crypto asset] exposure. “

“All [crypto asset] Banks reported exposures of around EUR 9.4 billion. In relative terms, these exposures represent only 0.14% of the weighted average exposure across the sample of all reporting banks [crypto asset] exposure,” Corrias wrote in detail in the report. “When considering a sample of all banks included in Basel III monitoring activities (ie, those that did not report) [crypto asset] exposure), the amount is reduced to 0.01% of the total exposure. “

World's Largest Banks Face $9 Billion in Crypto Assets, Basel Study Shows

According to BCBS, 19 banks worldwide submitted research data, and about 10 financial institutions were from the Americas. Seven banks are from Europe and two are from the rest of the world. Corrias noted that these banks represent a small number of financial institutions among the 182 banks considered by BCBS for its Basel III monitoring activities.

World's Largest Banks Face $9 Billion in Crypto Assets, Basel Study Shows

Crypto asset risks reported by banks mainly include Bitcoin (BTC) This is about 31% of exposure, and Ethereum (ETH) 22% of exposure. In addition to exposure to USD-backed stablecoins, banks are also linked to crypto assets such as xrp (Ripple), Cardano (ADA), Solana (SOL), Litecoin (LTC) and Stellar (XLM).

Corrias explained that banks’ exposure to cryptocurrencies includes three distinct categories, including cryptocurrency holding and lending, clearing and market making services, and custody/wallet/insurance services. Among the top five activities increasing banks’ crypto exposure, the top-ranked service is “providing custodial or wallet services for banks” [crypto assets]. “

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What do you think of the recent BCBS report on banks’ exposure to crypto assets? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News at News and a fintech reporter living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for News on the disruptive protocols emerging today.

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