Accounting giant KPMG Canada has joined a growing list of institutions that have invested in cryptocurrency after the company invested in Bitcoin and Ethereum. The company joins other prominent players such as Square, Tesla, and MicroStrategy that have also added cryptocurrency to their balance sheets.
The investment reflects KPMG Canada’s commitment towards emerging assets and technologies.
An Undisclosed Investment
KPMG Canada issued a statement about announcing the investment, stating that it showed the company’s belief in cryptocurrencies and blockchain technology, and their growing institutional adoption, indicating that they are set to become a regular feature of the asset mix.
In a statement released on Twitter, KPMG Canada stated,
“We have just completed an allocation of crypto assets 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.”
The firm did not reveal the size of its investment but stressed that it also bought carbon offsets so that it could maintain a net-zero carbon transaction. Kunal Bhasin, the blockchain co-lead at KPMG Canada, revealed that the firm has taken a fairly prudent approach to its investment. He further stated that the investment is part of a larger investment that the firm is making in the crypto asset space.
KPMG had constituted a governance committee consisting of a broad list of stakeholders that would provide oversight and approve the allocation. It undertook a detailed risk assessment process that consisted of a thorough review of reputational, regulatory, and custodial risks.
A Maturing Asset Class
Speaking about the investment, Benjie Thomas, Canadian managing partner, advisory services at KPMG, commented,
“Cryptoassets are a maturing asset class. Investors such as hedge funds and family offices to large insurers and pension funds are increasingly gaining exposure to crypto assets, and traditional financial services such as banks, financial advisors, and brokerages are exploring offering products and services involving crypto assets. 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.”
KPMG’s Pivot Towards Blockchain And Crypto Assets
KPMG has already waded into the crypto space, providing services related to blockchain technology and digital assets to its clients. Bhasin further added that KPMG has just about started exploring the space, stating that this is “just us putting our skin in the game.”
The firm will continue to focus on building its capabilities in the blockchain gaming space, metaverses, decentralized finance, and enabling institutional participation in web 3.0.
Other Institutions Getting In On the Act
Digital assets have attracted significant attention, and there has been a significant increase in interest from financial service providers—several other companies such as Block. Tesla, Galaxy Digital, and Coinbase have added cryptocurrency to their balance sheets. Ernst & Young Global is also working on creating technology and designing programs for several financial institutions which would enable them to tokenize financial assets.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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