KPMG Canada is a large international network of companies providing audit, consulting, and tax services, the name of which stands for the names of the founders of the organization: Klynveld, Peat, Marwick, and Goerdeler.
KPMG in Canada made its first direct cryptocurrency investment yesterday, adding Bitcoin and Ethereum to its corporate balance sheet.
Benji Thomas, Canadian Managing Partner for Advisory Services of KPMG Canada, said that diversification into crypto reflects KPMG's view that the use of digital assets will continue to grow and become a more traditional part of the asset suite.
According to him, crypto assets are a class of assets with maturity.
The transaction was completed through the Gemini Trust Company. This happened after KPMG established a management committee tasked with overseeing and approving treasury allocation.
Before the allocation, the committee considered risks, including regulatory risks.
Investing in cryptocurrency seems to be just the beginning of KPMG's involvement in digital assets.
This move makes KPMG one of the most prominent companies holding cryptocurrencies on its balance sheet.
In January, Bitcoin and Ethereum experienced significant price drops in parallel with the sell-off in the US stock market. But as stocks recovered, the cryptocurrency also began to do it.
And despite a massive 50% collapse from November highs, economists believe there will be a recovery to at least the same prices this year, as cryptocurrencies are gradually being accepted.
According to Justin Lenarcic, Wells Fargo's senior alternative investment strategist, the indicators that measure bitcoin usage and adoption point to a strong trend towards digitization.
One of the most important metrics for bitcoin adoption is network bandwidth. The network capacity continues to grow, and as of yesterday, it amounted to 3,351 bitcoins, which means that at current bitcoin prices, users can send and receive almost 123 million dollars over the network. This is four times more than a year ago and twice as much as six months ago, which is already a good omen for the long-term rationalization of cryptocurrencies.