“Big Four” accounting firm KPMG Canada has announced it has completed its first allocation of digital assets to its corporate treasury, comprising BTC and ETH.
‘Giant Melting Ice-Cube’ Behind the Decision?
Michael Saylor, the charismatic founder and CEO of MicroStrategy, first started converting the company’s cash reserves into Bitcoin in late 2020. At the time, he described his treasury as a US$500 million “giant melting ice cube”, a narrative that is seemingly gaining traction in institutional circles.
Unlike Saylor, who allocated only to Bitcoin and views cryptocurrencies other than Bitcoin as securities, KPMG has made an allocation to both Bitcoin and Ethereum.
In addition, as per its announcement, it has also made an allocation to carbon offsets to “maintain a net-zero carbon transaction to deliver on the firm’s stated environmental, social and governance (ESG) commitments”. Greenwashing much?
KPMG Canada’s managing partner, who facilitated the acquisition through the Winklevoss twins’ Gemini, added:
Cryptoassets are a maturing asset class … Investors such as hedge funds and family offices to large insurers and pension funds are increasingly gaining exposure to cryptoassets, and traditional financial services such as banks, financial advisers and brokerages are exploring offering products and services involving cryptoassets. This investment reflects our belief that institutional adoption of cryptoassets and blockchain technology will continue to grow and become a regular part of the asset mix.
Benjie Thomas, managing partner, advisory services, KPMG Canada
According to KPMG, the investment illustrates the firm’s outlook on emerging technologies underpinned by blockchain:
We’ve invested in a strong cryptoassets practice and we will continue to enhance and build on our capabilities across Decentralised Finance (DeFi), non-fungible tokens (NFTs) and the metaverse, to name a few. We expect to see a lot of growth in these areas in the years to come.
Kareem Sadek, advisory partner, Cryptoassets and Blockchain Services co-leader, KPMG Canada
Institutional Wall of Money Still Coming?
KPMG Canada’s announcement follows that of US$2.5 billion insurance firm Lemonade, which recently added $1 million in Bitcoin to its balance sheet, as well as the City of Rio de Janeiro, which is allocating 1 percent of its treasury to Bitcoin.
However, the KPMG announcement somehow feels different. Who could have expected a global accounting firm to allocate to crypto?
One of the potential roadblocks towards institutional adoption has always been the innate conservatism of traditional finance, and who better epitomises conservatism than global accounting firms?
That said, it wouldn’t be surprising, in time, if KPMG Canada’s allocation is viewed as a watershed moment in the story of institutional adoption.
Disclaimer:
The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.
Credit: Source link
