Accounting and advisory giant KPMG in Canada has completed an allocation of crypto assets to its corporate treasury, the firm’s first direct investment in crypto assets. The investment “reflects the firm’s commitment to emerging technologies and asset classes and the investment illustrates the firm’s outlook on emerging technologies underpinned by blockchain.”
According to a KPMG press release, the allocation includes bitcoin (BTC) and ether (ETH), 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.
The press release does not disclose the amount of the investment. Also, the reader should note the emphasis on “KPMG in Canada” – as far as CCN can tell, the investment does not apply to KPMG globally.
Acquired crypto through Gemini Trust
KPMG in Canada acquired its bitcoin and ether on its balance sheet through Gemini Trust Company LLC’s execution and custody services.
“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 crypto assets, and traditional financial services such as banks, financial advisors and brokerages are exploring offering products and services involving crypto assets.”
“This investment reflects our belief that institutional adoption of crypto assets and blockchain technology will continue to grow and become a regular part of the asset mix,” Benjie Thomas continues.
To ensure the investment was in line with corporate checks and balances, KPMG, according to the press release, established a governance committee to provide oversight and approve the treasury allocation.
“Crypto assets needs to be considered by financial services and institutional investors”
This 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 crypto asset 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 crypto assets 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,” Kareem Sadek added.
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