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Top 3 Cryptocurrencies for Banks: XRP surprises Alongside Giants Bitcoin and Ethereum

Wed 22 Nov 2023 ▪ 3 min of reading ▪ by Fenelon L.
Getting informed Altcoins

A recent report from the Basel Committee on Banking Supervision (BCBS) reveals that 19 large banks have heavily invested in crypto, amounting to 9.4 billion euros, with Ripple making a notable presence alongside giants Bitcoin and Ethereum.

Banks' top 3 cryptos

The crypto XRP gains popularity among banks

While the banking sector has long been reluctant toward cryptocurrencies, it seems that mindsets have radically changed. According to the recent report from the Basel Committee on Banking Supervision (BCBS), 19 large banks have massively invested in crypto at the level of 9.4 billion euros.

Unsurprisingly, Bitcoin (31%) and Ethereum (22%) dominate the portfolios, but XRP has also emerged with 2% of the total investments, equivalent to 188 million euros.

The increasing presence of XRP in the investment strategies of these institutions is notable. Even though it remains behind BTC and ETH, the XRP token has climbed to the third place among the favoured cryptocurrencies. This interest can be explained by several factors.

On one hand, Ripple has won several legal battles against the SEC, thereby reassuring investors about the long-term viability of XRP. On the other hand, Ripple continues to expand its cross-border payment services to new banks around the world. Its RippleNet network, which uses XRP, is now accessible in several countries.

Other altcoins emerging in banks

In addition to the dominant trio BTC-ETH-XRP, the BCBS report reveals the growing presence of other crypto-assets like DOT, ADA, or LTC in the banking portfolios. 

Together, they still represent only 5% of the allocations, but this shows that financial institutions are beginning to diversify their digital assets beyond dominant coins like Bitcoin and Ethereum. 

The increasing integration of public blockchains within banking strategies reflects a paradigm shift: banks are increasingly adopting innovations from decentralized finance.

With nearly 10 billion euros already invested in crypto, there is no doubt that this is just the beginning. The appetite of institutional investors for these new digital assets will probably only grow in the coming years. The banking sector could soon become one of the main drivers of mass adoption of cryptocurrencies like XRP.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.