Global banks have started actively integrating crypto assets into their financial operations, and XRP is one of their top preferences. This news marks a shift in skepticism surrounding cryptocurrencies, and reveals how some of the world’s leading banks are seeking to leverage XRP’s fundamental strengths as a cross-border payment system.
BCBS highlights XRP dominance in the banking sector
The Basel Committee on Banking Supervision (BCBS) recently did this published its first data collection template report on the ownership of crypto assets by banks. This report provides detailed insight into the exposure to cryptocurrencies from global banks.
According to the publication, 19 of the 182 global banks in the Basel III monitoring exercise have submitted their crypto asset data to the BCBS for review and analysis. Of the 19 banks, seven banks submitted reports from Europe, 10 banks from America and two from other parts of the world.
The data collection template showed that the majority of banks submitted reports on crypto asset exposure, mainly including XRP, BTCAnd ETH cryptocurrencies.
The report states that the total exposure to crypto assets filed by the global banks was €9.4 billion (approximately $10 billion). Among these exposures XRP emerged as the third largest altcoin used for banking orders.
XRP investments represented 2%, equivalent to €188 million of total crypto asset exposure. While Bitcoin and Ether were at 31% and 22% respectively.
“Reported exposure to crypto assets consists mainly of Bitcoin (31%), Ether (22%) and a large number of instruments with Bitcoin or Ether as underlying crypto assets (25% and 10% respectively),” the report said. .
This report underlines the growing interest in XRP in the financial banking sector. The Basel III monitoring exercise report also provides a valuable benchmark to understand the position of cryptocurrencies in the financial sector.
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BCBS Crypto Asset Reports
In the Basel III monitoring exercise template, a collective composition of crypto asset exposure by 19 of the world’s banks was disclosed. The report stated that the total exposure to crypto assets amount to approximately €9.4 billion, which represents a modest fraction of the cumulative cryptocurrency exposure at the 182 banks covered by the BCBS.
Overall, the 19 banks’ crypto asset exposures represent 0.05% of the total financial liabilities incurred by the institutions under the Basel III monitoring exercise.
“The total exposure to crypto assets reported by banks is approximately €9.4 billion. In relative terms, these exposures represent only 0.05% of the total exposures on a weighted average basis of the sample of banks reporting cryptocurrency exposures,” the report said.
It added:
“If we consider the entire sample of banks included in the Basel III monitoring (i.e. also those banks reporting no exposure to cryptocurrencies), the amount drops to 0.01% of the total exposure.”
The data collection template also revealed other crypto assets used by these global banks such as Cardano (1%), Solana (1%) Litecoin (0.4%) and Stellar (0.4%).
Featured image from Medium, chart from Tradingview.com