Global banks have invested over $100 billion in blockchain technology since 2020, as highlighted in the report 'Banking on Digital Assets' by Ripple, CB Insights, and the UK Centre for Blockchain Technologies.

This comprehensive report analyzed more than 10,000 investment deals and surveyed 1,800 financial executives, revealing a significant shift towards developing blockchain infrastructure for sustainable growth rather than just trading cryptocurrencies.

In total, banks have supported 345 blockchain startups, with a notable focus on enhancing payment-related infrastructure.

The practical application of blockchain technology is also evident in the expected transaction volumes for stablecoins, projected to exceed $700 billion per month by 2025.

Cross-border payment solutions are a primary focus for banks, with 65% of executives exploring custody services and over half prioritizing stablecoins and tokenized real-world assets.

Despite existing regulatory uncertainties, more than two-thirds of banks anticipate launching digital asset initiatives within the next three years, indicating a strong commitment to integrating blockchain into their operations.

A significant majority of financial executives, over 75%, believe that blockchain will be integral to the future of banking, enhancing transaction speed, reducing costs, and increasing transparency.

The rise in blockchain adoption is further supported by increasing government regulations, which have made banks feel more secure in their investments.

Notable blockchain initiatives include JPMorgan's GS DAP, a blockchain-based settlement tool, and HSBC's tokenized gold platform, showcasing how banks are integrating blockchain into their core operations.

The report also notes a resurgence in blockchain investment following the FTX incident, particularly from emerging markets like the UAE, India, and Singapore, which are leading the charge in adoption.

Looking ahead, 90% of finance leaders surveyed expect blockchain and digital assets to have a significant impact on the finance sector by 2028, with many institutions planning to pilot tokenized bonds and CBDC settlement layers.

Overall, the trend indicates that banks are modernizing their services through blockchain technology, marking it as a crucial element of the global financial system.