Bitcoin and ethereum received a ringing endorsement after KPMG in Canada said it had added them to the firm's corporate treasury, marking the Toronto-based tax and advisory company's first direct investment in cryptoassets.
The firm is an independent member affiliated with KPMG International, one of the Big Four accounting firms. It becomes one of the few well-established firms to invest in cryptocurrencies.
With the exception of technology companies and startups, Tesla (TSLA) is one of the rare big companies to have invested in cryptocurrencies. The electric vehicle maker, whose CEO Elon Musk is an ardent supporter of digital currencies, holds bitcoin in its balance sheet worth $1.99 billion.
KPMG did not disclose the amount of its investment in cryptocurrencies.
'A Maturing Asset Class'
Benjie Thomas, Canadian managing partner, advisory services, said in a statement that the 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."
"Cryptoassets are a maturing asset class," Thomas said. "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."
KPMG said 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 completed a 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 firm said.
Cryptoassest Industry Continues to Grow
"The cryptoasset industry continues to grow and mature and it needs to be considered by financial services and institutional investors," said Kareem Sadek, advisory partner, cryptoassets and blockchain services co-leader.
Sadek said "we've invested in a strong cryptoassets 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," he added.
The firm added bitcoin and ethereum on its balance sheet through Gemini Trust Company LLC's execution and custody services.
In addition to bitcoin and ethereum, the allocation carbon offsets to maintain a net-zero carbon transaction to deliver on the firm's stated environmental, social and governance (ESG) commitments.
The environmental impact has been a major concern and criticism of cryptocurrency as mining requires a large amount of energy.
Bitcoin was up 1.8% at last check to $43,498, while ethereum was off slightly to $3,081 at last check.
