KPMG Canada buys Bitcoin and Ethereum to diversify its treasury

The Canadian division of the professional services network KPMG has added Bitcoin (BTC) and Ethereum (ETH) to its company treasury, joining a growing list of prominent organizations that have converted a portion of their fiat holdings to cryptocurrencies.

KPMG Canada’s decision to include Bitcoin and Ether on its balance sheet underscores the firm’s opinion that digital assets are a “maturing asset class,” according to managing partner Benjie Thomas. In Canada, KPMG is following the actions taken by hedge funds, pension funds, and family offices in growing exposure to cryptocurrency.

Formation of a governance committee

KPMG Canada claimed it purchased carbon offsets as part of its environmental, social, and governance (ESG) mission, in addition to its recently acquired BTC and ETH holdings.

There would also be a governance committee to oversee the company’s treasury policy, which includes representatives from different divisions, including finance, risk management, and tax. Before opting to add crypto assets to its portfolio, KPMG claimed it “completed a rigorous risk assessment,” which included evaluating tax liabilities.

KPMG entered the crypto world in 2020

KPMG debuted a blockchain-based Climate Accounting Infrastructure Solution in 2020, dipping its toes in the crypto industry for the first time. The new project was created to help businesses reach their ESG goals.

Over the last year, a number of prominent institutions have sought investment in cryptocurrencies to diversify their holdings and hedge against inflation. MicroStrategy, a business analytics firm, is a well-known example, having converted most of its cash reserves into Bitcoin and even issuing debt to finance extra purchases. It is also planning to generate some yield from its heavy BTC holdings.

Meanwhile, according to official records disclosed on Monday, Elon Musk’s electric vehicle producer Tesla had roughly $2 billion in Bitcoin on its balance sheet by the end of 2021. According to the data from Bitcoin Treasuries, BTC is held by 40 publicly listed companies.