KPMG Invests In Bitcoin And Ethereum• February 8, 2022 4:46 pm • Comments
For the first time ever, KPMG announced that it will be adding Bitcoin and Ethereum to its corporate treasury which indicates that some crypto assets can now be considered a “matured” asset now.
KPMG is one of the big 4 consulting and auditing firms and this recent move helps to further reinforce the idea that large traditional funds and institutional investors that deal with things like pension funds are starting to move into the space.
These institutions are known for the reputation of being risk averse that look to achieve steady returns on an annual basis so the recent change could very well mean that crypto will be a part of the regular asset mix that is managed by these firms.
We have just completed an allocation of cryptoassets to our corporate treasury, our firm’s first of its kind investment in the asset class. This includes Bitcoin and Ethereum tokens, and carbon offsets to maintain a net-zero carbon transaction: https://t.co/32hsKbnGuC
— KPMG Canada (@KPMG_Canada) February 7, 2022
“Investors such as hedge funds and family offices to large insurers and pension funds are increasingly gaining exposure to cryptoassets, and traditional financial services such as banks, financial advisors and brokerages are exploring offering products and services involving cryptoassets,” said Benjie Thomas, Canadian managing partner, advisory services, KPMG in Canada in a release.
“This investment reflects our belief that institutional adoption of cryptoassets and blockchain technology will continue to grow and become a regular part of the asset mix.”
KPMG says it put together a governance committee to look at all of the angles before making the investment decision including risk and tax implications.
It says the investment represents its outlook on emerging technologies underpinned by blockchain.
KPMG continues to mention that they have started to invest in creating a new part of the firm that is specifically focused on crypto assets and expects to get involved in other spaces in the coming years including the metaverse, NFTs, and DeFi applications.
Reports from KPMG indicate that investments in crypto and the blockchain industry in general amounted to a total of over $30 billion in just 2021 alone.
The firm expects to see the volatility of these asset classes to eventually mature as well as institutional adoption becomes more widespread.
A Big 4 ACCOUNTING FIRM with a market cap of 30B.
This is arguably the biggest news for us, ever.https://t.co/OVwTwiE6AM
— The Wolf Of All Streets (@scottmelker) February 8, 2022
As digital assets witness more institutional adoption, financial service providers have become increasingly engaged in the space.
KPMG’s competitor Ernst & Young Global told MarketWatch last year that it is building technology and designing programs for some major banks and other key financial institutions to tokenize financial assets.
Meanwhile, companies such as electric vehicle maker Tesla TSLA, +1.62%, financial services company Block SQ, -0.51%, digital asset financial service firm Galaxy Digital GLXY, -3.70% and crypto exchange Coinbase COIN, +1.45%, have added cryptocurrency to their balance sheets.
But doing so can be risky. Bitcoin BTCUSD, 0.37% is down more than 36% from its all-time high of in November, while ether ETHUSD, -0.99% lost about 35% from its record high.
With more adoption happening, it is starting to look like 2022 may be a year of widespread adoption that coincides with increasing regulation from governments.
Just a month into the year, the crypto market has experienced a recovery recently indicating new optimistic investor sentiment.
— Lark Davis (@TheCryptoLark) February 8, 2022
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