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Polkadot, Ripple, and Cardano among Top 10 Cryptos Chosen by Banks

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VOC, Voice of Crypto, BTC

The rate of adoption of cryptos and other blockchain-related technologies by banks has been relatively slow compared to the rest of the world, to say the very least.

This is understandable since the idea of crypto itself goes against everything centralized banking systems stand for. However, these banks and centralized institutions are slowly beginning to welcome the idea of digital assets.

The most recent of these welcome songs from the banks is the new report from the Bank for International Settlements (BIS). In this report, the BIS lists ten of the most popular cryptocurrencies that are beginning to enjoy “crypto exposure” from banks worldwide.

Surprisingly, the two largest cryptocurrencies in the world by market cap are in the lead, with 31% of the “crypto exposure” going to bitcoin and 22% going to Ethereum, as per the report published on the last day of September 2022.

DOT, XRP, and ADA in the Crypto Rankings 

As it stands, Bitcoin (BTC) and Ethereum (ETH) are in the lead with 31% and 22%, respectively. However, followed closely are cryptos like Polkadot, Ripple Coin, and Cardano with 2% each, going to Polkadot and Ripple Coin, and 1% going to Cardano.

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Others include Solana (SOL), Stellar Lumen (XLM), and Litecoin (LTC).

Chart showing rate of adoption of top ten cryptos

Chart showing rate of adoption of top ten cryptos | Source: BIS Report

However, it is important to note that the groupings above are for “group-2 crypto assets”, with stablecoins like USDT and other Tokenized assets also having a share of the distribution.

The BIS Is Not Fully in Support

Without failing to mention, the BIS was proposed in June. This proposal is in a document titled “Second Consultation On The Prudential Treatments of Crypto Assets.”

This proposal aimed to limit the banks’ total exposure to these group-2 digital assets to Tier-1 capital.

Asides from this, the BIS also continues to take jabs at crypto and other crypto-related assets, claiming that these assets “can not play the role of real money.” They have also tagged this recent crypto winter as fulfilling their warnings about the “dangers” of decentralized finance.

However, the total exposure of banks worldwide to cryptocurrencies and other tokenized assets is estimated to be about 9.4 billion pounds. This amount only adds up to 0.01% if one considers all the banks involved in the Basel III monitoring exercise.

 

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Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR  (do your own research)

 

 

 

 

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Adekunle Joshua is a cryptocurrency writer. He has a deep understanding of the technology and how it can be used to improve the world. James is a strong advocate for using cryptocurrency to make the world a better place. He wants to help people understand the technology and use it to improve their lives.

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