Accounting firm KPMG is getting into cryptocurrencies. The firm announced in a press release on Feb. 7, 2021, that its Canada office had purchased Ethereum (ETHUSD) and Bitcoin (BTCUSD) for its corporate treasury. KPMG did not divulge the amount or figures related to its investment in cryptocurrencies.
"This investment reflects our belief that institutional adoption of cryptoassets and blockchain technology will continue to grow and become a regular part of the asset mix," stated Benjie Thomas, managing partner at KPMG's Canada office.
The firm's decision to make its crypto purchase in Canada may be related to the fact that the country has a regulatory framework that is more supportive of the asset class and related products as compared to the United States.
- KPMG Canada has purchased Bitcoin and Ethereum for its corporate treasury.
- The firm says that the investment reflects its belief that institutional adoption of cryptoassets will continue to grow.
- KPMG has been expanding its crypto advisory business, and it audits MicroStrategy, which has the biggest holdings of cryptocurrencies among publicly listed companies.
An Expanding Crypto and Blockchain Business
In recent times, KPMG has expanded its business to include new technology and finance practices. It already has a unit dedicated to providing cryptoassets and blockchain services. Its U.S. office is responsible for auditing software firm MicroStrategy Incorporated (MSTR), which has the biggest holding of cryptocurrencies among publicly listed companies.
"Having gone through this process ourselves now, we're confident we can guide clients and prospective clients through the process of cryptoasset treasury allocation," the firm told Bloomberg. "Our investment allows us to share our journey, our experiences, our challenges with them so that we can help them navigate the cryptoasset world."
In a November 2020 report, KPMG outlined its own cryptoasset framework designed to serve clients. It consists of five pillars that range from determining client requirements to managing forks in their cryptoassets and ensuring security and storage of their cryptocurrencies.
"We've invested in a strong cryptoassets practice, and we will continue to enhance and build on our capabilities across 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 years to come," stated Kareem Sadek, co-leader of KPMG's Cryptoassets and Blockchain Services division.