Global banks are starting to actively integrate crypto assets into their financial operations, and XRP is one of their main preferences. This news means a change in the skepticism surrounding cryptocurrencies, revealing how some of the world’s leading banks intend to use the fundamental strength of XRP as a cross-payment system. border.
BCBS Highlights XRP’s Dominance In Banking Sector
The Basel Committee on Bank Supervision (BCBS) recently published the first report on the data collection template of banks’ holdings of crypto assets. This report provides a detailed understanding of crypto exposure of global banks.
According to the publication, 19 of the world’s 182 banks in the Basel III monitoring exercise submitted their data on crypto assets to the BCBS for review and analysis. Of the 19 banks, seven banks submitted reports from Europe, 10 banks From America, and two from the rest of the world.
The data collection template reveals that most banks submit reports on crypto asset exposure, primarily showing XRP, BTCand ETH cryptocurrencies.
The report states that the total crypto asset exposures submitted by global banks amounted to €9.4 billion (about $10 billion). Among these exposures, XRP emerged as the third largest altcoin used for banking engagements.
XRP investments make up 2% equivalent to €188 million of total crypto asset exposure. while Bitcoin and Ether ranked 31% and 22% respectively.
“The reported crypto-asset exposures are mainly composed of Bitcoin (31%), Ether (22%), and several instruments with Bitcoin or Ether as the underlying crypto assets (25% and 10% respectively ),” said the report. .
This report highlights the growing interest in XRP in the financial banking sector. The Basel III monitoring exercise report also provides an important basis for gaining insight into the position of cryptocurrencies in the financial sector.
Token price resumes downtrend | Source: XRPUSD on Tradingview.com
BCBS Crypto Asset Reports
In the Basel III monitoring exercise template, a collective composition of crypto asset exposures of 19 of the world’s banks was disclosed. The report says that the total crypto asset exposure stands at around €9.4 billion, representing a moderate share of the accumulated crypto-asset exposures across the 182 banks covered by the BCBS.
In total, the crypto asset exposures of 19 banks constitute 0.05% of the total financial commitments made by the institutions under the Basel III monitoring exercise.
“The total crypto-asset exposures reported by the banks amounts to approximately €9.4 billion. In relative terms, these exposures constitute only 0.05% of the total exposure on a weighted average basis across the entire sample of banks reporting crypto-asset exposures,” the report said.
“When considering the entire sample of banks included in the Basel III monitoring exercise (i.e. those that do not report crypto-asset exposures), the amount decreases to 0.01% of total exposures.”
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