Banks Accumulate $100 Billion in Blockchain Investments, According to Ripple's Report
Ripple's latest report, "Banking on Digital Assets: How Traditional Finance is Investing in Blockchain," presents a compelling picture of the growing adoption of blockchain technology within the global finance industry. The study, produced in collaboration with CB Insights and the UK Centre for Blockchain Technologies (UKCBT), highlights the significant shift that has taken place over the past four years, with traditional banks investing heavily in blockchain and digital assets.
Between 2020 and 2024, traditional banks have made substantial investments in blockchain and digital assets, including 33 mega-round deals over $100 million involving major banks like Japan's SBI Group and Goldman Sachs. This trend demonstrates that the banking sector is increasingly taking blockchain seriously as part of its strategic future.
The appeal of blockchain lies in its ability to deliver near-instant settlements, lower transaction costs, continuous availability, and greater transparency. The report highlights features such as automated compliance mechanisms, smart contracts, and programmability as factors making blockchain more efficient and accessible for diverse markets.
Tokenized assets—including central bank reserves, commercial bank money, and government bonds—are highlighted as blockchain use cases expected to improve financial operations globally. According to Ripple’s analysis, tokenized assets could reach a market size approaching $19 trillion by 2033, underscoring blockchain’s long-term transformative potential.
However, Ripple’s CTO David Schwartz admits that institutional adoption on public blockchains has been slow, with many banks still preferring off-chain settlement for reasons including regulatory caution and concerns like terrorism financing associated with open blockchain liquidity providers. Ripple itself often facilitates off-chain settlements and is developing regulatory-compliant custodial services for tokenized assets, reflecting a hybrid approach that blends blockchain innovation with traditional regulatory frameworks.
Key investment areas identified in the report include institutional-grade tools for trading, staking, and tokenization, as well as innovations in global payments and digital asset custody. Digital assets have moved beyond the stage of optional innovation to become essential components of modern financial architecture.
One of the most compelling use cases discussed in the report is cross-border payments, which can be completed in seconds using blockchain technology. Stablecoin transaction volumes crossed $700 billion per month in early 2025, indicating a growing reliance on digital assets for international transactions.
The report emphasizes that blockchain is no longer seen as a speculative technology but rather as the underlying infrastructure supporting cryptocurrencies, stablecoins, and tokenized real-world assets. Banks are investing heavily in digital infrastructure, forming partnerships with fintech firms, and launching new services to remain competitive. More than $100 billion has been invested in blockchain companies since 2020.
The report concludes with insights from Francesco Pierangeli, Deputy Director of UKCBT, outlining what the coming years might bring as traditional finance continues its digital transformation. The study does not mention the number of finance leaders who believe blockchain will have a substantial or transformative effect on the industry within the next three years, nor does it discuss the cumulative value of tokenized assets by 2033 as projected by the Boston Consulting Group.
In summary, Ripple's report captures a phase where traditional finance is actively investing in and adapting blockchain technology, with expectations for significant impact on efficiency, security, and accessibility in global finance, while also navigating challenges related to transparency, compliance, and on-chain adoption speed. The report suggests that institutions are preparing to operate within a future system that will demand strong security protocols, regulatory clarity, and shared technical standards.
Technology plays a crucial role in the investment strategies of traditional finance, as evidenced by the increasing adoption of blockchain technology. Notably, banks have been investing heavily in blockchain and digital assets, with many seeing its potential in streamlining financial operations and improving security.
Investments in institutional-grade tools for trading, staking, and tokenization, as well as innovations in global payments and digital asset custody, have particular appeal to the sector. The report suggests that these investments reflect a commitment to integrate blockchain into the core of modern financial architecture.
