Marketing or belief? Opinions divided as KPMG Canada’s treasury adds BTC & ETH

The race to integrate cryptocurrencies into the global banking network is real. The digital asset marketplace recently reclaimed or rather surpassed the $2 trillion mark. The sheer valuation was one of the reasons for the unprecedented traction. A report published by KPMG, one of the ‘Big Four’ accounting organizations had published a report to highlight the same.

According to the company’s biannual Pulse of Fintech report, investment in crypto and blockchain surged to $30 billion in 2021. In 2018 the figure stood at $8.2 billion, with 2019 recording a figure of $5.6 billion and $5.5 billion in 2020.

Following the insights 

KPMG in Canada, on 7 February completed an allocation of crypto assets to its corporate treasury. This included Bitcoin, Ethereum tokens. It also incorporated carbon offsets to maintain a net-zero carbon transaction to deliver on the firm’s stated environmental, social and governance (ESG) commitments.

We have just completed an allocation of cryptoassets to our corporate treasury, our firm’s first of its kind investment in the asset class. This includes Bitcoin and Ethereum tokens, and carbon offsets to maintain a net-zero carbon transaction: https://t.co/32hsKbnGuC

— KPMG Canada (@KPMG_Canada) February 7, 2022

It acquired Bitcoin and Ethereum on its balance sheet through Gemini Trust Company LLC’s execution and custody services. Benjie Thomas, Canada KPMG Managing Partner stated:

“Cryptoassets are a maturing asset class. <…> This investment reflects our belief that institutional adoption of crypto assets and blockchain technology will continue to grow and become a regular part of the asset mix.”

Another executive reiterated a similar stance.

“The cryptoasset industry continues to grow and mature and it needs to be considered by financial services and institutional investors,” Kareem Sadek, Advisory Partner, Cryptoassets and Blockchain Services co-leader added.

Different proponents within the crypto industry expressed a positive sentiment. Mike Novogratz of Galaxy Digital (a financial services and investment management company’s founder tweeted,

“This is Big News. A few years back it was pulling teeth to even get a Big 4 firm to talk to a crypto company. Now they are part of the community. Onward and upward.”

But that’s not it. As a result of companies piling up cryptocurrencies in their treasuries, their shares have seen a major bump in prices and as a consequence of buying cryptos have received millions of dollars worth of free marketing. KPMG is one such example as share price of the flagship company hiked by 2% following the news. Apart from this, big banking institutions such as JP Morgan, Goldman Sachs were riding on this bandwagon as well.