Ripple Joint Report: Citigroup, JPMorgan, and Goldman Sachs Lead! Traditional financial giants completed 345 blockchain investments in five years, with institutions betting that the RWA market will reach $18 trillion.

The latest report jointly released by Ripple, CB Insights, and the UK Blockchain Technology Center shows that between 2020 and 2024, global banks will participate in 345 investments in the blockchain field, of which super round financing (megaround) accounts for 33 instances. Citigroup, Goldman Sachs (18 each) and JPMorgan Chase (15) have become the most active investment institutions. Global systemically important banks (G-SIBs) made a total of 106 investments, including 14 investments exceeding $100 million. Investments are concentrated in early stages (seed/A round), focusing on institutional trading and tokenization infrastructure, payments, and digital asset custody across three major scenarios. The report points out that traditional financial institutions (TradFi) are more inclined towards cooperation and investment rather than acquisition, and regulatory clarity (in the US, EU, UAE, and Singapore) is expected to drive a rebound in transaction volume in 2024. Boston Consulting Group predicts that the real-world asset tokenization (RWA) market will exceed $18 trillion by 2033.

Wall Street giants lead investment, focusing on three major Blockchain scenarios The report researched the blockchain layout of more than 1,800 banks from 2020 to 2024. The data shows:

• Citigroup and Goldman Sachs tie for first place: Each completed 18 investments in blockchain companies.
• JPMorgan Chase closely follows: Completed 15 investments, Japan's Mitsubishi UFJ Financial Group (MUFG) also with 15.
• Early investment focus: Mainly concentrated on seed and Series A financing, indicating that banks are willing to support emerging enterprises that align with long-term strategies.
• Key Investment Areas: Institutional-grade trading and tokenization infrastructure, payment solutions, digital asset custody services

Head Bank Case Study: From Pilot to Scaling

• JPMorgan Chase: Actively promoting the implementation of blockchain technology, its blockchain-based Kinexys platform has collaborated with Chainlink and Ondo Finance to be the first to complete a public on-chain tokenization transaction of U.S. Treasury bonds.
• Citigroup and Goldman Sachs: Each has established multiple blockchain partnerships, focusing on asset tokenization and capital market infrastructure upgrades.
• Representative Project Financing:
  • The cross-border payment platform Partior (with investments from JPMorgan and Standard Chartered) completed a $111 million Series B funding round in 2024.
  • Luxembourg-based securities financing solution provider HQLAx (backed by investments from 5 G-SIBs including Goldman Sachs, JPMorgan, and Citibank) optimizes the securities financing process based on Blockchain.

TradFi Strategy: Collaboration and Investment Take Precedence Over Acquisition The report observed that most G-SIBs are more inclined to invest or cooperate with blockchain companies rather than engage in full acquisitions. Banks' attitudes towards blockchain have shifted from cautious exploration after the "crypto winter" to proactive positioning. Although investment activities declined in 2022-2023 due to the impact of the FTX collapse, the transaction volume is expected to significantly rebound in 2024 (with fewer transactions but larger individual amounts).

Regulatory clarity drives recovery, the RWA market has broad prospects The report attributes the investment recovery to the gradual clarification of regulatory frameworks in major markets such as the United States, the EU, the UAE, and Singapore. The report predicts that the next focus for banks will be to scale blockchain solutions from institutional pilots to large-scale applications. The Boston Consulting Group (BCG) estimates that the market value of tokenized real-world assets (RWA) will exceed $18 trillion by 2033.

Regional banks enter the scene, long tail effect evident In addition to major institutions making significant strides, small regional banks are slowly entering the Blockchain field through partnerships with fintech companies and joining utility platforms. The report cites a 2022 survey in the United States showing that 11% of community banks plan to launch digital asset services.

Conclusion: Traditional financial giants such as Citibank, Goldman Sachs, and JPMorgan are deeply participating in the blockchain ecosystem as strategic investors, marking a new stage in the integration of TradFi and blockchain. Early investments focus on underlying infrastructure (trading, payments, custody) and asset tokenization (RWA), highlighting banks' long-term bets on the future shape of the financial industry. The ongoing improvement of the regulatory environment and BCG's forecast of an 18 trillion RWA market blueprint inject a strong boost into traditional financial institutions' blockchain layouts. As regional banks gradually enter the scene, the breadth and depth of blockchain technology's penetration into the financial industry is expected to usher in a new wave of expansion.