KPMG, an accounting firm, has seen the value of crypto assets and is now embracing cryptocurrency.
In a press release, the company disclosed that its Canada office has acquired Bitcoin (BTCUSD) and Ethereum (ETH) for its corporate treasury.
The actual figures pertaining to KPMG’s cryptocurrency investment were not disclosed, but the purchases were made through Gemini Trust Co., which is now providing custody services for the assets.
As part of the firm’s stated environmental, social, and governance (ESG) commitments, the allocation will also include carbon offset mechanisms to maintain a net-zero carbon transaction.
Benjie Thomas, a managing partner at KPMG’s Canada office, noted, “Crypto assets are a maturing asset class. Investors — such as hedge funds and family offices to large insurers and pension funds — are now increasingly gaining exposure to crypto assets, and traditional financial services such as banks, financial advisors, and brokerages are exploring offering products and services involving crypto assets.”
The move also illustrates the firm’s outlook on emerging technologies underpinned by blockchain.
“This investment underlines our confidence that the institutional adoption of crypto assets and blockchain technology will continue to increase and become a regular component of the asset mix,” added Thomas.
Growing Crypto and Blockchain Industry
Bitcoin is currently the leading digital currency in the Philippines. Latest data from Finder Cryptocurrency Adoption Index reported that as of July 2022, 11.6 million Filipinos already own crypto and Bitcoins is one of the most popular, with 39 % of crypto owners having it — which is above the global average of 37%.
According to a recent Business Insider report, Bitcoin generates 132.48 terawatt-hours (TWh) annually, which surpasses the energy usage of Norway at 123 TWh in the year 2020. It also highlights the carbon emissions that Bitcoin mining produces, which are estimated to now account for 40 billion pounds in the United States alone.
For its part, KPMG has recently broadened its business to incorporate cutting-edge financial techniques. It has already put up a division devoted solely to offering blockchain and crypto asset services.
MicroStrategy Incorporated (MSTR), the publicly traded company with the largest cryptocurrency holding, is currently being audited by the company’s U.S. office. “Having gone through this process ourselves now, we are confident we can guide clients and prospective clients through the process of crypto asset treasury allocation,” KPMG said in a press statement.
“Our investment allows us to share our journey, our experiences, our challenges with them so that we can help them navigate the crypto asset world,” the statement continued.
KPMG provides audit, tax, and advisory services. The firm also works closely with clients to help them mitigate risks and grasp opportunities in the Philippines.
Digital assets can be risky
Owning digital assets as part of treasury can be risky, however, due to big swings in cryptocurrency prices.
Bitcoin is down about 35 percent from an all-time high set in early November. Both MicroStrategy and Tesla, meanwhile, have taken impairment changes for their holdings after the value fell below purchase prices.
The shares of MicroStrategy has likewise tumbled last month after the SEC rejected its request to utilize unofficial accounting measures to present the value to investors.
In the Philippines, the new governor of the Bangko Sentral ng Pilipinas (BSP) said in a statement that the Philippine central bank has no plans of banning crypto despite a series of crypto crackdowns in Asia.