KPMG in Canada has reportedly completed an allocation of crypto-assets to its corporate treasury, the company’s first direct investment in digital assets.
The allocation includes Bitcoin (BTC) and Ethereum (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.”
Benjie Thomas, Canadian Managing Partner, Advisory Services, KPMG in Canada, stated:
“Cryptoassets are a maturing asset class. 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.”
KPMG formed a governance committee to offer oversight and approve the treasury allocation. The 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,” according to a release.
The investment illustrates the company’s outlook on emerging technologies “underpinned by blockchain.”
Kareem Sadek, Advisory Partner, Crypto-assets and Blockchain Services co-leader, KPMG in Canada, remarked:
“The crypto-asset industry continues to grow and mature and it needs to be considered by financial services and institutional investors. 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.”
KPMG in Canada acquired Bitcoin and Ethereum on its balance sheet via Gemini Trust Company LLC’s execution and custody services.
KPMG LLP, a limited liability partnership, is “a full-service Audit, Tax and Advisory firm owned and operated by Canadians.”
For more than 150 years, their professionals have offered consulting, accounting, auditing, and tax services to Canadians, inspiring confidence, empowering change, and driving innovation.
KPMG employs almost 8,000 professionals in more than 40 locations across Canada, “serving private- and public-sector clients.”
The company is established under the laws of Ontario and is a member of KPMG’s global organization of independent member firms “affiliated with KPMG International, a private English company limited by guarantee.” Each KPMG firm is “a legally distinct and separate entity and describes itself as such.”