KPMG makes its first allocations in Canada to cryptos

The firm has invested in Bitcoin and Ethereum as part of its corporate treasury

KPMG makes its first allocations in Canada to cryptos
Steve Randall

The Canadian arm of big four firm KPMG has taken a leap into cryptocurrency; it’s first such move in Canada.

The allocation to cryptoassets includes Bitcoin and Ethereum, 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.

Canadian managing partner of advisory services, Benjie Thomas, says cryptos are a maturing asset class and explained why KPMG has made its commitment.

"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,” he said. “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.”

Oversight committee

Cryptoassets are notoriously volatile and still pose a multitude of unanswered questions, but KPMG Canada has established an oversight committee to manage its allocations.

The committee is made up of members from its finance, risk management, advisory, audit, and tax functions. It also conducted a rigorous risk assessment which included regulatory and reputational risks.

"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," said Kareem Sadek, advisor partner, Cryptoassets and Blockchain Services co-leader, KPMG in Canada.