Taking its first step into the crypto space, KPMG Limited Liability Partnership in Canada has added crypto assets Bitcoin (BTC) and Ether (ETH) to its corporate treasury.
According to a Monday press release, the Canadian company, along with the newly added cryptocurrencies, included carbon offsets to compensate for CO2 emissions in line with the firm’s stated environmental, social and governance (ESG) commitments.
KPMG Canada is the Canadian division of “Big Four” accounting firm KPMG International. KPMG International offers audit, tax, and advisory services and the international arm generated $32 billion in revenue during 2021.
While the latest move involves only KPMG Canada, it could pave the way for the company’s divisions in other countries to hop into the crypto wagon to take advantage of the opportunities and emerging technologies underpinned by blockchain.
KPMG Canada purchased the crypto assets through Gemini Trust Company LLC’s execution and custody services, the crypto exchange company famously owned by the Winklevoss twins.
To ensure a smooth running of the new crypto asset treasury chest, the firm has created a governance committee to oversee any activity related to treasury allocation. The committee comprises stakeholders from finance, risk management, advisory, audit and tax, in addition to conducting several tests like a review of regulatory, reputational, and custodial risks.
Commenting on the announcement, Benjie Thomas, Canadian Managing Partner, Advisory Services, KPMG said the company’s investment reflects a “belief that institutional adoption of crypto assets and blockchain technology will continue to grow and become a regular part of the asset mix.”
Electric car manufacturer, Tesla, another company that added Bitcoin to its balance sheet revealed recently in its Q4 earnings report that it has not sold its bitcoin holdings which was worth $1.26 billion at the time the report was released.
Speaking about the future of decentralized finance (DeFi), non-fungible tokens (NFTs) and the Metaverse space that the company hopes to take further steps into, Kareem Sadek, Advisory Partner, Cryptoassets and Blockchain Services co-leader at KPMG said, “We expect to see a lot of growth in these areas in the years to come.”
