KPMG Canada Throws its Weight Behind Crypto
Posted by Colin Lambert. Last updated: February 8, 2022
KPMG in Canada says it has completed an allocation of cryptoassets to its corporate treasury, the firm’s first direct investment in the asset class. The allocation includes Bitcoin and Ethereum, as well as carbon offsets to maintain a net-zero carbon transaction to deliver on the firm’s stated environmental, social and governance (ESG) commitments, it adds.
The cryptoassets were acuired through Gemini Trust Company’s execution and custody services and reflects, KPMG Canada says, “the firm’s outlook on emerging technologies underpinned by blockchain”.
“Cryptoassets are a maturing asset class,” says Benjie Thomas, Canadian managing partner, advisory services, KPMG in Canada. “Investors such as hedge funds and family offices to large insurers and pension funds are increasingly gaining exposure to cryptoassets, and traditional financial services such as banks, financial advisors and brokerages are exploring offering products and services involving cryptoassets. 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.”
KPMG says it established a governance committee to provide oversight and approve the treasury allocation. The committee included stakeholders from finance, risk management, advisory, audit and tax, and it undertook and completed a “rigorous” risk assessment process that included a review of regulatory, reputational, and custodial risks. KPMG specialists also assessed the tax and accounting implications of the transaction.
“The cryptoasset industry continues to grow and mature and it needs to be considered by financial services and institutional investors,” says Kareem Sadek, advisory partner, cryptoassets and blockchain services co-leader, KPMG in Canada. “We’ve invested in a strong cryptoassets practice and we will continue to enhance and build on our capabilities across Decentralised Finance, Non-Fungible Tokens and the Metaverse, to name a few. We expect to see a lot of growth in these areas in the years to come.”