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KPMG Canada has joined a growing list of major corporations to create exposure to exposure to crypto through Bitcoin and Ethereum.
KPMG Canada has announced the addition of Bitcoin (BTC) and Ethereum (ETH) to its corporate treasury. According to Benjie Thomas, a managing partner for the firm, KPMG’s decision to incorporate BTC and ETH to its balance sheet means that the multinational sees digital currencies as a “maturing asset class.” Furthermore, by converting a portion of its fiat holdings into digital assets, KPMG Canada follows in the footsteps of other traditional financial services companies in gaining crypto exposure.
Insight Into KPMG Canada’s Bitcoin, Ethereum Acquisition
KPMG Canada acquired the digital assets through Gemini Trust Company’s execution and custody services. Before approving the treasury allocation, the Toronto-based firm formed a governance committee to review the regulatory, reputational, and custodial risks. The committee included stakeholders from finance, risk management, advisory, audit, and tax. Furthermore, KPMG specialists assessed the tax and accounting implications of the digital currency transaction.
In addition to its newly-acquired Bitcoin and Ethereum holdings, KPMG Canada also stated that it bought carbon offsets. This it did as part of its environmental, social, and governance (ESG) mandate. Furthermore, KPMG chose not to disclose how much BTC and ETH it acquired.
Kareem Sadek, another partner and advisory and risk consulting blockchain leader for KPMG Canada, weighed in on the recent development. In a media session, Sadex explained that the firm is still erring on the side of caution as it ventures into the crypto space. This is primarily why KPMG Canada has chosen to opt for only BTC and ETH so far. Nonetheless, Sadek reaffirmed the company’s commitment to establish other vested interests in the digital assets space going forward. This also includes non-fungible tokens (NFTs) and decentralized finance (DeFi), and by extension, Web3 and the metaverse. Sadek said:
“This is one of the many initiatives in the crypto asset space that we’re looking at. KPMG in Canada is bullish on crypto assets. We believe they are here to stay, and we’ll consider other innovative investment opportunities in the future.”
Mainstream Corporations Favor Crypto Exposure for Its Perceived Advantages
KPMG first flirted with the crypto space back in 2020, when it unveiled a blockchain-based Climate Accounting Infrastructure Solution. According to reports at the time, the new project was supposed to assist companies in meeting their ESG targets. Several major corporations have been seeking crypto exposure over the past year in an attempt to diversify their holdings. Furthermore, Bitcoin is increasingly becoming a more attractive recourse to these companies as a hedge against inflation. A clear case example of this was when business intelligence firm MicroStrategy converted all its cash reserves into BTC on the brink of the new year.
KPMG International is a vast global network of firms with its headquarters in the Netherlands. For its 2021 fiscal year, the accounting giant reported approximately $32 billion in revenue.