Banks invested over $100B in blockchain infrastructure from 2020 to 2024. 65% of banks explore digital asset storage, focusing on stablecoins and tokenized RWAs. Emerging markets like UAE and India lead growth, outpacing US and Europe adoption. Traditional financial institutions have invested more than $100 billion in blockchain infrastructure between 2020 and 2024, according to a joint study by Ripple, CB Insights, and the UK Centre for Blockchain Technologies (UK CBT) titled “Banking on Digital Assets.” The report analyzed more than 10,000 blockchain deals and surveyed over 1,800 financial institution executives worldwide. According to the report, banks are increasing investments in digital assets despite regulatory uncertainty and market volatility. Between 2020 and 2024, banks participated in 345 blockchain-related deals. The greatest interest was in payment infrastructure, followed by cryptocurrency storage, tokenization, and currency transactions on the blockchain. Additionally, approximately 25% of investments targeted infrastructure supporting settlements and digital asset issuance. Over 90% of surveyed executives believe blockchain and digital assets will have a significant or massive impact on the financial sector by 2028. Among banking respondents, 65% are actively exploring digital asset storage options, with more than half citing stablecoins and tokenized real-world assets (RWAs) as priorities. The report cites examples of new technology implementation such as HSBC's tokenized gold platform, Goldman Sachs' GS DAP blockchain settlement tool, and Japanese bank SBI’s developments in quantum-resistant digital currency. However, consumer digital assets are not a primary focus for most banks, with less than 20% of respondents saying they offer crypto trading or wallets for retail clients. The report emphasized that changes are more infrastructural than speculative. By investing in blockchain, banks aim to modernize international payments, optimize balance sheet management, and reduce reliance on legacy systems. Ripple indicates that “the tokenization of real assets is moving into the implementation phase.” While regulatory clarity is still lacking in many countries, more than two-thirds of surveyed banks expect to launch digital asset initiatives within the next three years. These include pilot projects with tokenized bonds and infrastructure for settlements using CBDCs (central bank digital currencies) and private stablecoins. Crypto market participants are investing in tokenized treasury products, with McKinsey estimating their potential at $2 trillion. Blockchain investment from traditional finance peaked after the FTX collapse in Q1 2024. The biggest growth has been seen in emerging markets, particularly the UAE, India, and Singapore, which are outpacing the US and Europe in adoption rates. Analysts note that the next wave of institutional adoption of digital assets will be driven not by hype or retail fever but by a gradual transformation of the global financial infrastructure.
