This global financial giant is buying up Bitcoin. Could ASX banks be next?

Bitcoin and Ethereum just made its way onto another corporate balance sheet…

Key points
  • KPMG Canada has allocated an undisclosed amount of its balance sheet in Bitcoin and Ethereum
  • The decision was made as the accounting firm see's maturity in crypto assets
  • ASX-listed banks are yet to add crypto to their balance sheet. Though, there has been an interest in the space

It's been a big week for Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), with both coins seeing prices rebound after a sustained period of decline.

In the latest development, one of the "big four" accounting firms has announced that it will be investing in both Bitcoin and Ethereum. The Canadian arm of KPMG revealed that it has allocated funds to its corporate treasury to invest in crypto assets.

This move is an example of more traditional financial institutions entering the market. But, are ASX banks keeping crypto at arm's length?

First, let's read why KPMG is taking a chance on Bitcoin and Ethereum.

Cryptocurrency bitcoin coin in gold piggy bank

Image source: Getty Images

Mature crypto assets become too big to ignore

Yesterday, KPMG Canada announced a first-of-its-kind investment for the firm with an investment in the two largest cryptocurrencies by market capitalisation.

According to the release, the investment comprised of Bitcoin, Ethereum, and carbon offsets to counteract the emissions of the transactions. The accounting firm allocated the funds using Gemini's execution and custody services.

While the addition of crypto to its balance sheet suggests a positive sentiment, cryptocurrency advocates might be wondering why it took so long. Bitcoin has now been in existence for around 13 years.

In explaining, KPMG's managing partner of advisory services, Benjie Thomas, said that the decision to invest in Bitcoin and Ethereum is based on maturity as an asset class.

Crypto assets 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.

Adding:

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.

Furthermore, the decision was made following an in-depth evaluation by the firm. This included a complete risk assessment considering regulatory, reputational, tax, and accounting implications.

Are ASX banks getting involved with Bitcoin?

Financial institutions in Australia are also approaching cryptocurrencies with a more open mind in the last few months.

Surprisingly, the Commonwealth Bank of Australia (ASX: CBA) — Australia's largest bank — announced plans to unlock crypto investments to its customers in November 2021. In addition, the feature would be enabled through its partnership with Gemini, a regulated crypto exchange.

However, CBA is not the only ASX bank to be taking Bitcoin and its crypto peers more seriously. Remarks from Nigel Dobson, banking services portfolio lead at Australia and New Zealand Banking Group Ltd (ASX: ANZ), indicate the potential for another major bank to enter the fray.

Dobson highlighted that the market had become too big to ignore. Although — at this stage — no ASX-listed banks have added cryptocurrencies to their balance sheets.

At the time of writing, Bitcoin is up 2.7% in the last 24 hours to A$61,706. Similarly, Ethereum is trading 2.5% higher at A$4,410.

Motley Fool contributor Mitchell Lawler owns Bitcoin, Commonwealth Bank of Australia, and Ethereum. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Cryptocurrencies

Panicked man with his hand on his head with a red Bitcoin symbol and arrow going down.
Cryptocurrencies

Why did the Bitcoin price just plunge 6%?

Bitcoin and Ethereum both just got walloped. But why?

Read more »

A man sits at his computer with his head in his hands while his laptop screen displays a Bitcoin symbol and his desktop computer screen displays a steeply falling graph.
Cryptocurrencies

Bitcoin is back below US$77,000. Is this an opportunity for ASX investors?

Three big falls, three very different businesses.

Read more »

A rich buisnessman buys luxury items with Bitcoin
Cryptocurrencies

Why is the Bitcoin price rocketing 16% this week?

Crypto investors have sent the Ethereum and Bitcoin prices soaring this week. But why?

Read more »

A smiling woman holds a Bitcoin token in her hand.
Cryptocurrencies

Amid big swings in the Bitcoin price, can the crypto really help diversify your investment portfolio?

Leading analysts sound off on the diversification benefits of buying Bitcoin.

Read more »

A man sits at a desk with a phone in one hand, his other hand on his chin and studies a computer screen in front of him with what appears to be cryptocurrency data on both screens.
Cryptocurrencies

ASX shares or crypto? Here are the benefits and risks of each

Which asset should ASX investors choose?

Read more »

A Bitcoin symbol atop a spring, indicating the uncertain direction of cryptocurrency as a commodity
Cryptocurrencies

What could spark a Bitcoin price rebound in 2026?

Three powerful catalysts could determine whether Bitcoin’s brutal 2026 downturn finally begins to reverse.

Read more »

Red arrow crashing in the ground with a Bitcoin token next to it.
Cryptocurrencies

Down 48%, why a Bitcoin price rebound may be off the cards

Will Bitcoin and Ethereum ever recover their 48% and 61% price losses?

Read more »

Gold Bitcoins lying on a global finance currency chart with arrows shooting higher.
Cryptocurrencies

Could US lawmakers drive a rebound in the beaten-down Bitcoin price?

Bitcoin and Ethereum are both down almost 50% in a year. Could this be the catalyst crypto investors have been…

Read more »