XRP Holds 2% of Banks’ €9.4 Billion Crypto Exposure


Financial institutions across Europe, North America, and various other regions have openly declared their investments in XRP. 

Responding to the rise of virtual assets, the Basel Committee on Banking Supervision (BCBS) has revealed its involvement in diverse supervisory activities over the years. The BCBS committee meticulously collected information on banks’ cryptocurrency holdings, obtaining data on individual crypto assets. 

Nineteen banks participated in sharing their investment data. Ten hailed from North American countries, seven from Europe, and the remaining two from other regions. 

Banks Disclose €9.4 Billion Crypto Exposure, XRP at 2%

In terms of crypto exposures, the collective disclosure from the banks, as outlined in the report, amounted to €9.4 billion or $10.27 billion. Notably, XRP emerged as the third-largest altcoin regarding substantial commitments acknowledged by the 19 banks. 

Specifically, XRP comprised 2% of the total exposure. This equates to a valued position of €188 million or $205 million within the €9.4 billion portfolio.

Among the top 20 crypto assets by exposure, the report highlighted noteworthy entries such as Cardano (ADA), Polkadot (DOT), Solana (SOL), Stellar (XLM), and Litecoin (LTC).

However, most banks concentrated on Bitcoin and Ethereum investments. These constitute 31% and 22% of the €9.4 billion total exposure, respectively. Additionally, investment vehicles tracking BTC and ETH represented 25% and 10% within the overall portfolio, respectively.

BCBS’ Cautionary Note

As this report marks the inaugural use of a new data collection template, BCBS acknowledged potential biases and data quality issues in its findings. The committee highlighted uncertainty regarding whether certain banks may have underreported or overreported their crypto exposures. 

Consequently, BCBS emphasised interpreting the findings cautiously, offering an overview of member banks’ crypto activity. It’s important to note that the BCBS report relied on data submitted by banks in 2021. 

Additionally, the 19 banks, while providing valuable insights, represent a relatively small segment within the extensive sample of 182 banks. 

These 19 banks account for 17.1% of total Risk-Weighted Assets (RWA) and 20.9% of the overall Leverage Ratio Exposure Measure (LREM). There is also a predominant presence from North American banks, comprising approximately three-quarters of these proportions.

Read Also: Ripple Spotlights XRP’s Key Role at Swell Event in Dubai 

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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