Global traditional banks have collectively invested over $100 billion in blockchain and digital asset infrastructure between 2020 and 2024, signaling a significant shift in the financial sector. This substantial investment, detailed in a new report titled "Banking on Digital Assets" by Ripple in collaboration with CB Insights and the UK Centre for Blockchain Technologies, underscores the growing acceptance and integration of distributed ledger technology within mainstream finance. According to the report, a striking 90% of surveyed finance executives anticipate blockchain to have a "massive impact" on the financial industry by 2028.
The comprehensive report, which analyzed over 10,000 investment deals and surveyed 1,800 financial executives globally, reveals that traditional financial institutions participated in 345 blockchain-related deals during the five-year period. These investments primarily targeted foundational blockchain technologies such as payments, tokenization, digital asset custody, and on-chain foreign exchange. The study highlights that banks are no longer merely deliberating on blockchain's potential but are actively integrating it as a core component of modern financial systems.
Leading global banks, including Citigroup, JPMorgan Chase, Goldman Sachs, and Japan's SBI Group, have been among the most active investors in blockchain startups. Many of these investments were directed towards early-stage funding rounds, indicating a commitment to fostering innovation from the ground up. The strategic rationale behind this influx of capital includes the pursuit of near-instant settlements, reduced transaction costs, continuous availability, and enhanced transparency offered by blockchain solutions.
Despite periods of market volatility and regulatory uncertainty, the report notes that capital formation in the blockchain space has accelerated, with traditional finance investment reaching a post-FTX high in the first quarter of 2024. The findings suggest that emerging markets, particularly the UAE, India, and Singapore, are driving adoption at a faster pace than the United States. Looking ahead, the tokenization of real-world assets is projected to be a defining trend, with estimates from Boston Consulting Group and Ripple forecasting this market to exceed $18 trillion by 2033.