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.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

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

hivemapper.jpeg

Research

We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

article-image

Exploit shows centralization can sometimes be an asset

article-image

The Fidelity Ethereum Fund, like other proposed ETH ETFs, seeks to stake a portion of its assets, according to the firm’s Wednesday registration statement

article-image

The DAO first voted on enabling SAFE transfers over a year ago

article-image

The final Bitcoin halving, where the mining reward becomes smaller than one satoshi, is expected to occur in 2140

article-image

The Department of Justice and Commodity Futures Trading Commission announced back-to-back lawsuits against KuCoin Tuesday