Global banks have begun to actively integrate cryptoassets into their financial operations and XRP has been one of their top preferences. This news signifies a shift in skepticism surrounding cryptocurrencies, and reveals how some of the world’s leading banks are looking to leverage XRP’s fundamental strengths as a cross-border payments system.
BCBS highlights XRP dominance in banking sector
Recently, the Basel Committee on Banking Supervision (BCBS) has published its first data collection model report on banks’ cryptoasset holdings. This report provides a detailed view of the crypto exposure of 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 revealed that the majority of banks submitted reports on exposure to cryptoassets, mainly by submitting XRP, btcand ETH CRYPTOCURRENCIES.
The report states that total crypto asset exposures submitted by global banks amounted to €9.4 billion (around $10 billion). Among these exhibitions, XRP emerged as the third largest altcoin used for banking commitments.
Investments in XRP represented 2% equivalent to 188 million euros of the total exposure to cryptoassets. While bitcoin and Ether occupied 31% and 22% respectively.
“Reported cryptoasset exposures are primarily comprised of Bitcoin (31%), Ether (22%), and a multitude of instruments with Bitcoin or Ether as underlying cryptoassets (25% and 10% respectively),” the report states. .
This report highlights the growing interest of XRP in the financial banking sector. The Basel III monitoring exercise report also provides a valuable reference point for insights into the position of cryptocurrencies in the financial sector.
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BCBS Cryptoasset Reports
In the modeling of the Basel III monitoring exercise, a collective composition of the cryptoasset exposures of 19 of the world’s banks was revealed. The report states that the total cryptoasset exposures They amount to about 9.4 billion euros, which represents a modest fraction of the accumulated exposures to crypto assets in the 182 banks covered by the BCBS.
Overall, the cryptoasset exposures of the 19 banks constitute 0.05% of the total financial commitments undertaken by the institutions within the framework of the Basel III monitoring exercise.
“The total exposure to crypto assets reported by banks amounts to approximately 9.4 billion euros. “In relative terms, these exposures represent only 0.05% of total exposures on a weighted average basis across the sample of banks reporting exposures to cryptoassets,” the report states.
“When considering the entire sample of banks included in the Basel III monitoring exercise (i.e. also those that do not report exposures to cryptoassets), the amount is reduced to 0.01% of total exposures.”
The data collection template also revealed other crypto assets employed by these global banks, such as Cardano (1%), solarium (1%) Litecoin (0.4%) and Stellar (0.4%).
Featured image from Medium, chart from Tradingview.com