Major Financial Institutions Allocate More Than $100 Billion for Blockchain Infrastructure Advancement

Between 2020 and 2024, traditional finance (TradFi) participants allocated over $100 billion to blockchain enterprises. The most engaged entities included SBI Group, Goldman Sachs, Citigroup, and JPMorgan.

A collaborative report from Ripple, CB Insights, and the UK Centre for Blockchain Technologies revealed that leading figures in traditional finance took part in 345 funding rounds for blockchain firms during the 2020 to 2024 timeframe, with a majority being early-stage investments.

The overall investment in blockchain companies during this period surpassed $100 billion across more than 10,000 transactions. The most significant deals included:

• $1 billion contributed by MassMutual, New York Life, and Morgan Stanley for the advancement of New York Digital Investment Group (NYDIG);
• $312.95 million invested by Banco Itaú in the Brazilian FinTech startup CloudWalk;
• $104 million raised by German Solaris from Japan’s SBI Group.

Investment efforts were primarily focused in the U.S., Japan, Singapore, France, and the U.K. TradFi participants expressed the highest interest in projects within the following sectors:

• institutional infrastructure for trading, staking, and asset tokenization (27%);
• payment solutions (24%);
• custodial solutions for digital asset storage (21%).

Globally systemically important banks (G-SIB) played a crucial role, accounting for 106 transactions, including 14 funding rounds exceeding $100 million. Citigroup and Goldman Sachs emerged as the most active investors in this category, each completing 18 transactions. Financial powerhouses JPMorgan Chase and Mitsubishi UFJ Financial Group each engaged in 15 funding rounds.

The report further indicates that major TradFi players transitioned from sporadic pilot initiatives to the comprehensive integration of blockchain technologies into their operational frameworks. Noteworthy projects include:

• HSBC initiated a gold tokenization project for retail clients in Hong Kong in March 2024 and executed a pilot project for quantum-safe security transactions;
• JP Morgan Chase finalized the first public blockchain transaction for the settlement of tokenized U.S. Treasury bonds in collaboration with Chainlink and Ondo Finance;
• Morgan Stanley established instant international currency settlement capabilities for its corporate and institutional clientele.

Key factors positively influencing the increasing blockchain engagement from TradFi include:

• Regulatory clarity. The implementation of significant regulations such as the GENIUS Act in the U.S. and MiCA in the EU, along with licensing through VARA in Dubai, has notably diminished legal ambiguity and facilitated market entry for banks in digital assets.
• Rising demand for stablecoins. According to Citi, transaction volumes reached $650–700 billion monthly in Q1 2025, encouraging more banks and FinTech firms to create their own stable assets.
• RWA tokenization. Analysts anticipate that the RWA market could expand 50-fold by 2030, prompting early infrastructure investments.
• Technological advancements. The development of quantum-safe security solutions, smart contracts, and multi-currency payment platforms that enhance operational efficiency and lower costs for banks.
• Increased client confidence. Approximately 90% of surveyed global financial leaders believe that blockchain technologies will have a significant impact on the industry within the next three years.

JPMorgan revealed a partnership with cryptocurrency exchange Coinbase, potentially facilitating the integration of crypto into traditional banking services.

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