Accounting firm KPMG is getting into cryptocurrencies. The company announced in a press release on February 7, 2021 that its Canadian office had purchased Ethereum (ETHUSD) and Bitcoin (BTCUSD) for its corporate treasury. KPMG did not disclose the amount or figures related to its cryptocurrency investment.
“This investment reflects our belief that institutional adoption of crypto-assets and blockchain technology will continue to grow and become an integral part of the asset mix,” said Benjie Thomas, Managing Partner of KPMG’s Canadian office.
The company’s decision to make its crypto purchase in Canada may be related to the fact that the country has a more favorable regulatory framework for the asset class and related products compared to the United States.
Key points to remember
- KPMG Canada bought Bitcoin and Ethereum for its corporate cash.
- The company says the investment reflects its belief that institutional adoption of cryptoassets will continue to grow.
- KPMG has expanded its crypto advisory business and is auditing MicroStrategy, which holds the largest cryptocurrency holdings among publicly traded companies.
A growing crypto and blockchain company
In recent times, KPMG has expanded its activities to include new technologies and financial practices. It already has a unit dedicated to providing crypto-assets and blockchain services. His US office is responsible for auditing software company MicroStrategy Incorporated (MSTR), which holds the largest portfolio of cryptocurrencies among publicly traded companies.
“Having gone through this process ourselves now, we are confident that we can guide clients and potential clients through the crypto-asset cash allocation process,” the company told Bloomberg. “Our investment allows us to share our journey, our experiences, our challenges with them so that we can help them navigate the world of crypto-assets.”
In a November 2020 report, KPMG outlined its own crypto-asset framework designed to serve clients. It consists of five pillars that range from determining customer needs to managing forks in their crypto-assets and ensuring the security and storage of their cryptocurrencies.
“We have invested in a strong crypto-asset practice, and will continue to improve and grow our capabilities in decentralized finance (DeFi), non-fungible tokens (NFTs), and the metaverse, to name a few. We expect to see a lot of growth in these areas in the coming years,” said Kareem Sadek, co-head of KPMG’s Cryptoassets and Blockchain Services division.