KPMG: US Blockchain Investment In 2018 Has Surpassed 2017’s Total
Published on Tuesday, a new report from KPMG has shown a surge in blockchain investments this year. The “Big Four” auditor’s “Pulse of Fintech 2018” report states that traditional venture capital funding in U.S.-based blockchain companies in 2018 has already surpassed 2017’s total.
According to the report, the impressive rally was led by $100 million-plus funding rounds for Circle Internet Finance – a Goldman Sachs subsidiary – and consortium startup R3. Circle raised approximately $110 million this year in a series E round, while R3 raised $107 million.
Safwan Zaheer – KPMG U.S.’s Financial Services Digital and Fintech Lead – was featured in the report, stating that “there’s more VC flow available than opportunities to invest – a sign of tremendous growth in the space.”
“In particular, investments in blockchain doubled the first half of 2018 compared to 2017. Blockchain has the potential to transform banking and if banking systems were to be rewritten today they would be based on blockchain,” Zaheer added in the report.
The report attributed the surge in blockchain investment to various factors, including the “widespread applicability of blockchain to help harness efficiencies within financial institutions.”
“Blockchain’s capabilities extend from recordkeeping and the registration of transactions to documentation management and supply chain management. While it has primarily been looked at from a banking and insurance point of view to date, the reality is blockchain opportunities abound and could enhance processes for any number of US and global businesses,” the report states.
According to KPMG, the industry will only gain momentum moving forward.