Bitcoin, ETH, XRP: Banks' Crypto Holdings Exposed By BCBS


21 Nov 2023 12:00 PM

In an unprecedented analysis, the BCBC has unveiled a comprehensive report on the Bitcoin, Ethereum, XRP and crypto holdings of banks....

  • The Basel Committee on Banking Supervision (BCBS) has released a report on banks' involvement in crypto assets.
  • 19 banks reported their crypto assets, accounting for 17.1% of total risk-weighted assets and 20.9% of the overall leverage ratio exposure measure.
  • The total crypto exposures reported by banks amount to approximately €9.4 billion, representing 0.05% of total exposures on a weighted average basis.
  • Bitcoin (BTC) accounts for 31% of the exposures, followed by Ether (ETH) at 22%, and a variety of instruments based on Bitcoin or Ether make up 35% of the exposures.
  • The report categorizes banks' crypto activities into three groups: 'Crypto holdings and lending,' 'Clearing client and market-making services,' and 'Custody/wallet/insurance and other services.'
  • Custody, wallet, and insurance services account for half of the reported crypto exposures, while clearing and market-making services make up 46%.
  • The most significant subcategories in terms of exposure are providing custody and wallet services, trading crypto on client accounts, and facilitating client self-directed trading.

The report provides a comprehensive analysis of banks' involvement in crypto assets, shedding light on the extent of their exposures and the dominant preference for major cryptocurrencies like Bitcoin and Ethereum.

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You May Ask

What percentage of total risk-weighted assets do the 19 banks reporting crypto exposures account for?What are the top three cryptocurrencies in terms of exposures reported by banks?Which category of crypto activities accounts for half of the reported crypto exposures?What are the most significant subcategories in terms of exposure among banks' crypto activities?

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