Investment in the crypto and blockchain space in 2021 grew 5.5 times more than it had in the previous year, according to a new report from one of the Big Four accounting firms, KPMG. Cryptography and blockchain will have a blockbuster year in 2021, according to KPMG.
The KPMG report on investments in cryptocurrency, blockchain and fintech was released Monday. “We saw growing deal sizes in a wide variety of fintech subsectors, from cryptocurrency and blockchain to wealth tech and cybersecurity,” the Big Four noted, noting that global fintech reached $210 billion last year.
In the first half of 2021, the blockchain and cryptocurrency sectors attracted nearly twice as much venture capital, private equity, and mergers and acquisitions as they had in 2020. This branch of fintech accounted for the highest amount of investments in the first half of 2021, which was almost eight billion U.S. dollars. Previously, the highest amount of investments in this branch was recorded in 2018, which amounted to approximately seven billion U.S. dollars.
In its report titled “Blockbuster Year for Crypto and Blockchain”, published in 2021, KPMG detailed that in 2021, investment in the crypto and blockchain industry expanded from $5.4 billion in 2020 to over $30 billion.
Crypto and its underlying technologies have become increasingly recognized globally for their potential role in modern financial systems, according to KPMG.
“Furthermore, the growing activity in the space has prompted the development of new digital currencies by central banks, some of which are following in China’s footsteps with the creation of the digital yuan,” the global professional services firm said in a statement.
Additionally, according to the report, VC investment in 2021 reached an all-time high of $115 billion, surpassing the previous high of $53.2 billion set in 2018.
In addition, KPMG in Canada is investing in cryptocurrencies. KPMG in Canada announced on Monday that it had purchased bitcoin and ether for its corporate Treasury.
The Big Four accounting firm said, “We believe institutional acceptance of crypto assets and blockchain technology will continue to grow and become part of a regular asset mix in the future.”