TORONTO, Feb. 7, 2022 – KPMG Canada has completed an allocation of bitcoin to its corporate treasury, the firm’s first direct investment in bitcoin.
This time it’s fresh news from Canada, not the honking truckers, but the suited corporate tax optimization strategists at the ‘big-four’ branch KPMG.
It’s a first-of-its-kind investment for KPMG in Canada, reflecting the firm’s commitment to emerging technologies and asset classes.
To meet the firm’s declared environmental, social, and governance (ESG) obligations, the allocation comprises Bitcoin (BTC) and Ethereum (ETH).
“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,” he added.
Will the investment be profitable, or will it be a disaster? Kareem Sadek, Advisory Partner, Cryptoassets and Blockchain Services co-leader at KPMG in Canada, seems optimistic:
“The cryptoasset industry continues to grow and mature and it needs to be considered by financial services and institutional investors.”
“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.
KPMG in Canada acquired Bitcoin on its balance sheet through Gemini Trust Company LLC’s execution and custody services.
Will the remaining “big-three” Deloitte, PwC and EY follow suit? The accounting industry is dynamic and competitive and future market share depends on decisions taken in today’s turbulent economic environment. Bitcoin challenges the core of the accounting business model as it is hard to audit and tax.
Accounting firms and business consulting firms such as KPMG have invested millions into blockchain events and corporate blockchain research. Are they finally waking up to realize it’s all about bitcoin, not blockchain?
Only time will tell. Whatever plans KPMG has for bitcoin don’t matter because bitcoin simply doesn’t care. It does love the attention, however.