FEBRUARY 8, 2022 BY HENNESSY AJANG
Canada-based accounting giant KPMG announced that it has added cryptocurrency to its balance sheet making it the firm’s first such direct investment in digital assets. However, the consulting firm did not specify the exact amount of bitcoin and ether purchased, at the time of this post.
As per the press release, the allocation included Bitcoin [BTC] and Ethereum [ETH], with the support of Gemini Trust Company LLC’s execution and custody services.
In addition to that, KPMG has formed a governance committee to ‘provide oversight and approve the treasury allocation.’ The committee comprised of various stakeholders belonging to different domains such as Finance, Risk Management, Advisory, Audit, and Tax.
After gaining insights, the firm then conducted and completed a thorough risk assessment process that included a review of regulatory, reputational, and custodial risks. Experts at KPMG also assessed the tax and accounting impact of the transaction.
KPMG Exec, “Cryptoassets are a maturing asset class”
Benjie Thomas, KPMG’s Managing Partner at the Advisory Services, Canada termed cryptocurrencies as a maturing asset class. And went on to add,
“Investors such as hedge funds and family offices to large insurers and pension funds are increasingly gaining exposure to crypto-assets, and traditional financial services such as banks, financial advisors, and brokerages are exploring offering products and services involving digital assets This investment reflects our belief that institutional adoption of these and blockchain technology will continue to grow and become a regular part of the asset mix.”
The recent investment demonstrates the changing stance of some of the world’s biggest multinational corporations towards emerging technologies underpinned by blockchain.
Echoing similar sentiments Kareem Sadek who work as an Advisory Partner, Cryptoassets and Blockchain Services at KPMG also said that the crypto industry has grown by leaps and bounds and that it needs to be considered by traditional financial services and institutional investors.
Having said that the accounting firm also plans to build on its capabilities in the Decentralized Finance [DeFi], Non-Fungible Tokens [NFTs], and the Metaverse in the near future as it expects to see a lot of growth in these areas in the years to come.