A new report backed by Ripple reveals that traditional banks have invested more than $100 billion in blockchain and digital assets since 2020, signaling a significant shift from a speculative interest to a core infrastructural focus. The report, titled "Banking on Digital Assets," analyzed over 10,000 blockchain deals and surveyed 1,800 financial executives, concluding that the digital asset revolution is now an established part of global finance.
Instead of focusing on speculative cryptocurrencies like Bitcoin, banks are concentrating on modernizing their financial systems. The majority of their investments between 2020 and 2024 have targeted payment infrastructure, custody services, and tokenization platforms. This shows a move toward practical, enterprise-level applications rather than direct-to-consumer crypto offerings. For example, less than 20% of banks offer retail crypto trading, but a remarkable 65% are exploring digital asset custody.
Despite the evolving regulatory landscape, especially in Western countries, institutional confidence remains high. Over 90% of finance leaders believe that blockchain will have a "significant" or "massive" impact on the financial system by 2028. More than two-thirds of banks plan to launch some form of digital asset initiative within the next three years, including pilots for tokenized bonds and private stablecoin infrastructures.
The report highlights that while North America and Europe are proceeding cautiously, emerging markets like the UAE, India, and Singapore are leading the charge in blockchain adoption. The first quarter of 2024 saw a post-FTX high for traditional financial institution investment in blockchain, defying the broader crypto market downturn. This suggests that institutional capital is now prioritizing the long-term transformation of global finance over short-term market volatility.
In essence, the report argues that the quiet revolution of blockchain is no longer about hype. It's about rebuilding the core infrastructure of global finance, and traditional banking is now a key player in this long-term transformation.
August 2025, Cryptoniteuae