New Study: 19 Banks Around The World Have $9.24 billion in Crypto Assets Exposure
New Study: 19 Banks Around The World Have $9.24 billion in Crypto Assets Exposure.
A new report published by an international committee tasked with developing banking regulations offers insight into the exposure of banks to crypto assets.
The Basel Committee on Banking Supervision studied how banks are exposed to crypto as part of its analytical, supervisory and policy initiatives.
Bitcoin and Ethereum Has More Exposure From Banks
According to the research, the average crypto asset exposure of banks is $9.24 billion, based on data from 19 banks from the Americas, seven from Europe, and two from elsewhere.
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These banks make up a relatively small percentage among the 182 banks considered for the Basel III monitoring exercise: 2.4% of total RWA and 7.2% of overall leverage ratio exposure measure (LREM), with nearly three quarters of these amounts coming from the Americas.
In the report, however, only two banks account for more than half of the crypto exposure, while four accounts for less than 40%.
Bitcoin (BTC), and Ethereum (ETH), are among the most popular digital assets that banks have exposure to, according to the data.
“Reported crypto asset exposures are primarily composed of Bitcoin (31%), Ether (22%) and a multitude of instruments with either Bitcoin or Ether as the underlying crypto assets (25% and 10% respectively). Together, these make up almost 90% of reported exposures.”
As a result of the study, banks have also demonstrated significant exposure to crypto such as, Polkadot (DOT), Ripple (XRP), Cardano (ADA), Solana (SOL), Litecoin (LTC) and Stellar (XLM) as well as a much smaller exposure to USD Coin (USDC) and other tokenized assets.
The Banks’ Crypto Assets Exposure Spans Through Three Categories
There are three broad categories of bank exposure to crypto, including crypto holdings and lending, clearing and market-making services, and custody, wallet, and insurance.
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“Custody/wallet/insurance and other services make up half of the reported crypto exposures, with the rest largely made up of clearing and market making services (46%) and the remaining 4% due to crypto holdings and lending.”
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