Ripple Report: TradFi Continues to Invest in Blockchain Infrastructure

Editor’s Note: In the rapid evolution of financial technology, traditional banks are quietly transforming their roles, moving from observers on the fringes of Blockchain to deep participants in ecosystem construction. This research report jointly released by Ripple and CB Insights systematically outlines the investment paths of global banks in the blockchain startup field since 2020, revealing the strategic intentions of Financial Institutions in building digital asset infrastructure. Whether betting on underlying capabilities such as trading, payment, and custody, or actively intervening in ecosystem construction through mergers and acquisitions, banks are gradually breaking traditional boundaries, transitioning from 'old finance' to 'on-chain finance'.

From 2020 to 2024, global banks participated in a total of 345 investments in blockchain startups. Most of these investments were concentrated in the early stages, including seed rounds and Series A financing, demonstrating the high attention and proactive strategic choices of banking institutions towards blockchain technology and the digital asset sector. For banks, this method of venture capital is not common, especially for companies at such an early stage, reflecting their confidence in the direction of digital asset infrastructure development — believing it to be an essential component of the next generation of financial systems.

Among these investments, 33 are super financing rounds, with a single financing amount exceeding 100 million USD. In terms of countries and regions, banks in the United States, Japan, Singapore, France, and the United Kingdom are the most active. Notably, Japan's SBI Group, the United States' Goldman Sachs, and Thailand's SCBX Group's SCB 10X stand out. The funds from these super financing rounds mainly flow into three directions: first is institutional-level infrastructure, especially the technological framework for trading, staking, and tokenization, accounting for 27%; second is payment system infrastructure, accounting for 24%; third is digital asset custody services, accounting for 21%.

The three super financing deals completed in 2024 further illustrate the specific direction of market development. Brazilian fintech company CloudWalk secured approximately $760 million in funding from Banco Itaú, BTG Pactual, and Banco Safra in May and December. Since its establishment in 2013, CloudWalk has been dedicated to modernizing local payment services in Brazil through Blockchain technology and has recently expanded into the U.S. market.

In March of the same year, Japan's SBI Group led the F-II round of financing for Germany's embedded financial platform Solaris, with a total amount exceeding $104 million. As an important player in the German digital asset field, Solaris has assisted in launching the country's first digital asset trading platform and the first regulated security token issuance platform. In addition, it also provides digital banking account services and digital asset custody solutions. After this financing, SBI Group further acquired a controlling interest in Solaris, consolidating its presence in the European market.

Why Are Financial Institutions Actively Betting on Blockchain?

Global banks are accelerating the integration of digital asset services, with some institutions even planning to fully connect to blockchain-related financial infrastructure within the next five years. According to research by CB Insights and Ripple, 57% of surveyed financial executives stated that their institutions are already exploring, testing, or integrating digital asset products and services. Among institutions that have not yet ventured into this area, more than one-third plan to launch related deployments within the next three years.

The interest of banks in blockchain technology can be attributed to three main driving factors:

The first is the improvement of global payment efficiency. Blockchain technology can bypass the complex intermediary layers in traditional cross-border payments, enabling funds to settle within seconds, significantly reducing costs and settlement risks. Especially under the dollar-dominated system, blockchain technology provides a more symmetrical way for non-dollar economies to participate.

The second is the structural reconstruction of the asset market brought about by asset tokenization. Through Blockchain, traditional stocks, bonds, real estate, and commodities can be issued and traded in digital form, which not only improves the liquidity of assets but also lowers the entry barriers. This change not only affects the investment structure but is also gradually rewriting asset pricing and trading infrastructure.

The third is the integration of data transparency and regulatory technology. Compared to traditional ledger systems, Blockchain has higher information symmetry, auditability, and process automation capabilities. This allows banks to complete reviews at a lower cost when facing compliance, Anti-Money Laundering (AML), and Know Your Customer (KYC) requirements.

The Strategic Role of Traditional Banks in the Digital Asset Ecosystem

More and more large banks are no longer just investors or pilot users, but are becoming actual participants in the construction of blockchain infrastructure. Wall Street giants like Goldman Sachs, Citigroup, and JPMorgan Chase have launched self-built or alliance-led blockchain projects.

JPMorgan's Onyx platform and JPM Coin have formed a certain scale in the institutional settlement market. Citigroup focuses on the tokenized securities issuance platform, with its pilot projects covering U.S. Treasuries, the global foreign exchange market, and derivatives clearing systems. HSBC completed its first real estate tokenization transaction based on the R3 Corda platform in 2023, aiming to promote high-net-worth clients' use of blockchain assets in traditional asset allocation.

At the same time, Asian financial institutions are also quickening their pace. The SBI Group not only launched the digital asset trading platform TAOTAO in Japan but also accelerated the construction of on-chain financial bridges between Europe and Asia through investments in companies like UK's Copper and Germany's Solaris. Singapore's DBS Bank has also launched the digital exchange (DDEx), supporting institutional clients in the trading and custody of crypto assets.

In the custody field, the advantages of traditional banks are particularly evident. Large banks with regulatory licenses and compliance management experience have become the preferred partners for many Web3 projects seeking cooperation. They can provide digital asset custody solutions that comply with local regulations and integrate with traditional financial services such as auditing and taxation.

Digital Asset Regulatory Environment and Policy Progress

The report points out that after 2023, the clear tightening of regulatory policies globally is forcing the market to accelerate the process of normalization. Taking the United States as an example, the GENIUS Act has set detailed licensing and reserve requirements for stablecoins, digital asset custody, and trading platforms. The European MiCA regulatory framework requires all digital asset service providers to obtain a unified license within the European Economic Area.

In Asia, Hong Kong, China launched the Virtual Asset Service Provider (VASP) system in 2023 and announced the stablecoin issuance guidelines in 2024. The Monetary Authority of Singapore (MAS) has also increased capital requirements and information disclosure regulations for cryptocurrency platforms.

Financial institutions must make adjustments in compliance capabilities and technical adaptation to maintain a leading position in this emerging market. This is also why many banks choose to collaborate with blockchain-native companies to acquire technical resources and operational experience through mergers and acquisitions or strategic investments.

Conclusion: Who Will Win the Future of Digital Finance?

Digital assets are no longer a speculative bubble or a "bystander game." It is clear from the investment roadmap of global banks that in the next five to ten years, blockchain will become an indispensable part of financial infrastructure. The participation of financial institutions not only provides legitimacy to the crypto ecosystem but also promotes a more rigorous and compliant institutional evolution.

However, this process will not be smooth sailing. The flaws in stablecoin design, the uncontrollability of algorithmic mechanisms, on-chain settlement risks, and the gap between technology and regulation remain challenges that the entire industry must face.

The real financial revolution is not only a transformation of asset forms but also a fundamental reconstruction of institutional logic, trust mechanisms, and data structures. In this transformation, if traditional banks can integrate with the native power of Blockchain and promote together, they may win the most central position in the future financial landscape.