According to a BIS analysis, the top 10 crypto assets selected by banks include Polkadot, XRP, and Cardano.
A recent study by the Bank for International Settlements (BIS) lists the most well-known cryptocurrencies among the banks that have acknowledged crypto exposure, despite the fact that the exposure to the cryptocurrency market by international banks is still quite limited.
According to the Basel III Monitoring Report by the BIS Basel Committee on Banking Supervision (BCBS), which was released on September 30, the two biggest cryptocurrencies by market capitalization, Bitcoin (BTC) and Ethereum (ETH), are currently in the lead, with 31% of the reported crypto asset exposure belonging to Bitcoin and 22% to Ethereum.
Favored cryptocurrencies among banks
These two big cryptocurrencies “make up approximately 90% of reported exposures,” according to the survey, while other popular crypto assets among banks include Polkadot (DOT), which accounts for 2% of recorded exposures, Ripple’s XRP, 2%, Cardano (ADA), 1%, Solana (SOL), 0.4%, and Stellar (XLM), 0.4%.
As the BIS explains:
“These exposures would probably be categorized as Group 2 cryptoassets under the Basel Committee’s present consultation proposal. In smaller sums, banks also reported tokenized assets and a stablecoin (USD currency).”
BIS’s dubious approach
As a reminder, in its consultative paper titled “Second consultation on the prudential regulation of cryptoassets,” the BCBS had proposed in late June to restrict the banks’ overall exposures to “Group 2 cryptossets to 1% of Tier 1 capital.”
The organization however maintains its skepticism about digital assets, claiming that they “cannot fulfill the social role of money” and cautioning that the cryptocurrency sell-off showed the fulfillment of its foreseen warnings regarding the dangers of decentralized finance (DeFi).
When taking into account the whole sample of banks engaged in the Basel III monitoring exercise, Finbold previously reported on the BIS’s conclusions that the worldwide banks’ overall exposure to cryptocurrencies amounted to about €9.4 billion ($9.18 billion), or under 0.01%.
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