Global banks invested in 345 blockchain-related projects between 2020 and 2024, with major institutions like JP Morgan and Goldman Sachs leading aggressive early-stage funding rounds that signal blockchain's evolution from experimental technology to strategic financial infrastructure, according to a new Ripple report.
What to Know:
- Global banks completed 345 blockchain investments from 2020-2024, with leading institutions focusing on seed and Series A funding rounds
- Major deals included CloudWalk's $750 million funding from Brazilian banks and Solaris raising over $100 million with SBI Group participation
- HSBC pioneered quantum-secure tokenization with its Gold Token launch in Hong Kong, marking a shift toward post-quantum cryptography protection
Traditional Finance Embraces Digital Asset Strategy
The investment surge reflects a fundamental shift in how traditional financial institutions view blockchain technology. Leading banks are moving beyond pilot programs to commit substantial capital toward digital asset infrastructure.
JP Morgan, Goldman Sachs, and Japan's SBI Group emerged as the most active early-stage investors during this period. Their focus on foundational funding rounds demonstrates confidence in blockchain's long-term potential rather than speculative short-term gains.
Brazil's CloudWalk secured the largest single investment, raising over $750 million from three major domestic banks: Banco Itaú, BTG Pactual, and Banco Safra. The company initially focused on streamlining domestic payments through blockchain technology before expanding operations into the United States market.
Germany-based Solaris raised more than $100 million in 2024 with participation from SBI Group. The fintech company operates Germany's first regulated digital asset trading venue and launched a security token platform. SBI later acquired a majority stake to strengthen its European market presence.
NYDIG's $1 billion funding round in 2021 attracted backing from Morgan Stanley and MassMutual, though the institutional bitcoin platform was discontinued in 2024. Morgan Stanley quickly adapted by offering bitcoin exchange-traded funds through partnerships with BlackRock and Fidelity.
Systemic Banks Take Measured Approach
Global Systemically Important Banks participated in 106 blockchain deals during the same timeframe, including 14 mega-rounds and numerous strategic partnerships. These institutions largely avoided full acquisitions, preferring flexible collaboration models that allow rapid pivoting if needed.
G-SIB-backed companies focus on institutional-grade solutions rather than consumer applications. Key portfolio firms include Talos for institutional trading, Fnality for interbank payments, and Partior for cross-border settlements.
Fnality develops payment infrastructure using central bank-backed digital currencies. Talos connects institutional traders with cryptocurrency exchanges and over-the-counter trading desks. Partior enables real-time international settlements through shared blockchain ledgers.
Despite the 2022 market downturn and FTX collapse fallout, bank activity rebounded in 2024. While deal volume decreased, total investment value increased year-over-year, suggesting a shift toward higher-stakes strategic investments.
Quantum Security Becomes Priority
HSBC distinguished itself through quantum-secure blockchain applications, piloting tokenized gold using post-quantum cryptography and quantum random number generation in 2024. These technologies prepare digital assets for potential future quantum computing threats.
The bank launched its Gold Token for Hong Kong retail clients in March 2024. The product allows fractional ownership of physical gold through a regulated blockchain platform, representing a significant step toward mainstream tokenized asset adoption.
This innovation reflects growing institutional belief that tokenization improves liquidity, accessibility, and market efficiency. Fractional ownership models expand investment opportunities across different demographic segments.
Understanding Key Terms
Tokenization converts real-world assets into digital tokens on blockchain networks, enabling fractional ownership and enhanced liquidity. Post-quantum cryptography refers to security methods designed to resist attacks from quantum computers, which could potentially break current encryption standards.
Global Systemically Important Banks are large international institutions whose failure could trigger worldwide financial instability. These banks face stricter regulatory requirements but wield significant market influence.
Central bank digital currencies represent government-issued digital money that operates on blockchain infrastructure while maintaining traditional monetary policy controls.
Market Infrastructure Evolution
Top-tier institutions develop proprietary digital asset systems like JP Morgan's Kinexys platform and HSBC's Orion network. Regional banks typically form fintech partnerships or join shared infrastructure projects rather than building independent systems.
A 2022 survey indicated 11% of U.S. community banks plan to offer cryptocurrency services. This percentage likely increased as competitive pressure intensifies and regulatory clarity improves.
The trend suggests blockchain technology is transitioning from experimental edge case to core financial infrastructure component.
Closing Thoughts
The sustained investment pattern demonstrates traditional finance's commitment to blockchain integration despite market volatility. As competition intensifies and regulatory frameworks solidify, more banks will likely accelerate their digital asset strategies to maintain market relevance.
