KPMG in Canada has reportedly taken the initiative to move towards digital assets where the giant has made provisions in cryptocurrencies for its corporate treasury. This is the firm's first direct investment in cryptocurrency.
The provisions include Bitcoin (BTC) and Ethereum (ETH), as well as carbon balancing to keep transactions clean of any carbon use to meet the firm’s environmental, social and governance (ESG) demands.
According to Benjie Thomas, Canadian Managing Partner, Advisory Services, KPMG in Canada is of the view that “cryptocurrencies are a mature asset class”. He added, “investors comprising the Hedge Fund and several insurance companies and pension funds are increasingly exposed to cryptocurrencies. Similarly, traditional financial sectors such as banks, financial advisors and brokerages are exploring offering products and services involving cryptocurrencies. This investment reflects our belief that institutions using cryptocurrency and blockchain technology will continue to grow and become part of the asset mix, ”he said.
KPMG established a governance committee to provide oversight and approve treasury allocations. The Committee, which includes stakeholders from Finance, Risk Management, Advisors, Audit and Taxation, is tasked with conducting and completing a rigorous risk assessment process that includes a review of regulatory, reputational and oversight risks. KPMG experts also assessed the tax and accounting implications of the transaction.
The investment reflects the firm’s views on the technologies supported by the blockchain. “The crypto industry continues to grow and mature so it will be something that financial services and institutional investors need to consider,” said Kareem Sadek, Advisory Partner, Crypto and Blockchain Services, KPMG in Canada.
