A new report supported by Ripple indicates that traditional financial institutions have channeled upwards of $100 billion into blockchain endeavors since 2020, signaling a significant move towards the integration of digital assets.
The study, titled “Banking on Digital Assets,” is the result of a collaboration between Ripple, CB Insights, and the UK Centre for Blockchain Technologies (UK CBT). It analyzed data from over 10,000 blockchain-related transactions and included insights gathered from a survey of more than 1,800 executives in the global finance sector. The research suggests that prominent banks are increasing their investments in areas such as custody solutions, tokenization processes, and payment systems, even in the face of evolving regulations and fluctuating market conditions.
The research suggests a significant financial commitment to blockchain and digital assets worldwide, with an estimated total investment surpassing $100 billion between 2020 and 2024. Furthermore, the study highlights that a substantial majority, 90%, of finance leaders surveyed anticipate a considerable impact from these technologies on the financial landscape within the next three years.
According to the report’s data spanning the years 2020-2024, traditional financial players have been involved in 345 blockchain-related transactions across the globe. Payment infrastructure projects have attracted the largest portion of this investment, followed by crypto asset custody, tokenization initiatives, and foreign exchange activities conducted on blockchain networks. Approximately a quarter of these investments were directed towards companies specializing in blockchain settlement infrastructure and asset issuance platforms.
Ripple’s survey of finance executives revealed that over 90% expect blockchain and digital assets to exert a “significant” or “massive” influence on finance by 2028. Among banking institutions, 65% are reportedly exploring digital asset custody services, with more than half identifying stablecoins and tokenized real-world assets as key areas of interest.
The report references examples such as HSBC’s tokenized gold platform, Goldman Sachs’ GS DAP, a tool for blockchain-based settlements, and SBI’s activities related to quantum-resistant digital currencies. However, the survey indicates that most financial organizations aren’t focusing on consumer-facing digital asset services; less than 20% of banks are offering cryptocurrency trading options or retail wallet solutions.
The report’s findings suggest a move towards infrastructure development rather than purely speculative investments. Financial institutions are primarily investing in blockchain to improve international payment processes, optimize balance sheet management, and reduce dependence on older systems. Ripple, a provider of blockchain technologies for enterprises, interprets these findings as proof that the tokenization of tangible assets is transitioning into an active implementation phase.
Despite the lack of regulatory clarity in many areas, more than two-thirds of the banks surveyed anticipate launching a new digital asset initiative within the next three years. These ventures may range from piloting tokenized bonds to constructing interoperable settlement networks for both central bank digital currencies (CBDCs) and private stablecoins.
Counter to any concerns raised by recent crypto market downturns, Ripple’s report posits that investment activity is actually picking up steam, not receding. It points out that blockchain investments from traditional finance reached a high point following the collapse of FTX in the first quarter of 2024, and that emerging markets, such as the UAE, India, and Singapore, are spearheading adoption at a faster pace than the US and Europe.
The report’s central message to blockchain businesses and infrastructure providers is that future institutional adoption will be driven by the practical transformation of global finance systems, not just short-lived hype or retail-driven frenzies.
Read the full “Banking on Digital Assets” report.