According to a survey by the Basel Committee, 19 of the world’s largest banks hold nearly $9 billion in digital assets, and banks holding crypto assets may account for only 0.01% of total Bank for International Settlements (BIS) exposure.
The survey involved 19 banks, of which 10 are from the Americas, seven are from Europe and the remaining two are from the rest of the world.
The Basel Committee on Banking Supervision survey found that Bitcoin and Ethereum accounted for 0.14% of total exposure. The study also pointed to the need for capital markets to add new rules for lenders to hold digital assets.
Of the banks surveyed, two hold more than half of the assets, and four banks are earning the remaining 40% of assets. The uneven distribution of shareholdings among banks creates a market gap.
Cryptoasset exposure is dominated by 31% bitcoin, 22% ether, and a mix of bitcoin and ether at 25% and 10%, respectively.
The cryptocurrency market has liquidated billions of dollars this year. Exposure to cryptocurrencies has increased significantly.
The Committee’s Secretary, Renzo Corrias, highlighted the importance of study and said:
“The template [sent to banks] was specifically designed to support the Committee’s two consultative documents on the prudential treatment of banks’ crypto-asset exposures, which were published on 10 June 2021 and 30 June 2022.”
Corrias said the committee’s plan sets capital requirements for unsecured assets such as BTC, ETH, and other cryptocurrencies. The new regulations mentioned in the report could limit lending and shut down banks’ access to the crypto market. In contrast, looser rules would apply to hedging exposures and other stablecoins.
However, the results of this study may be limited due to the small sample size.
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