KPMG Canada Latest Firm to Add Bitcoin, Ether to Balance Sheet

Beyond the investments, the firm is looking to enable institutional participation in Web3

article-image

Source: Shutterstock

share

key takeaways

  • KPMG in Canada is bullish on cryptoassets and could consider investments beyond BTC and ETH in the future, executive says
  • The firm is educating institutions about the metaverse, NFTs and Decentralized Autonomous Organizations (DAOs)

The Canadian arm of accounting giant KPMG International has joined a growing list of companies adding crypto to corporate treasury accounts.

The Toronto-based company, which offers ​​consulting, accounting, auditing and tax services, has added bitcoin and ether to its corporate treasury, the company said Monday.

KPMG International, a global network of firms headquartered in the Netherlands, reported roughly $32 billion in revenue for its 2021 fiscal year. The latest crypto investment was made by KPMG in Canada.

Since Michael Saylor’s MicroStrategy added bitcoin to its balance sheet, dozens of companies have followed suit in what industry participants view as a growth area for the space.

The assets were acquired through Gemini Trust Company’s execution and custody services. KPMG formed a governance committee to review the regulatory, reputational and custodial risks before approving the treasury allocation.

The company declined to disclose the amount of BTC and ETH purchased.

Kareem Sadek, a partner and advisory and risk consulting blockchain leader for KPMG Canada, told Blockworks the company is taking a “prudent” approach to the space and has so far only considered buying bitcoin and ether.

“This is one of the many initiatives in the cryptoasset space that we’re looking at,” Sadek said. “KPMG in Canada is bullish on cryptoassets. We believe they are here to stay, and we’ll consider other innovative investment opportunities in the future.”

Benjie Thomas, Canadian managing partner of advisory services for KPMG in Canada, said that hedge funds, family offices, insurers and pension funds are increasingly snapping up crypto.

Others, such as banks, financial advisors and brokerages, he added, are exploring the space, as well.

About 90% of institutions interested in crypto expect to allocate to the space by 2026, according to a recent Fidelity study.

Next, KPMG Canada is looking to enable institutional participation in Web3, Sadek told Blockworks, with a focus on the metaverse, NFTs and Decentralized Autonomous Organizations (DAOs).

The firm offers crypto-related services when it comes to taxes, accounting and legal matters.

“Our DeFi workshops now include live demos of multiple applications, which inform how institutions can engage with applications and manage the associated risks,” Sadek said. “Being a multi-faceted professional services firm, we are uniquely positioned to engage with our clients in these workshops to share our insights that form the foundation of our support when helping in developing their strategy, roadmap and even proof-of-concepts.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png

Research

ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.

article-image

Plus, is Polymarket this cycle’s breakthrough mainstream app?

article-image

The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors

article-image

Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts

article-image

North Korea suspected in breach of Indian exchange’s multisig wallet

article-image

Plus, Sanctum’s CLOUD token has officially launched — but not without problems

article-image

It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.