India’s Techies Missed The AI Train, Its Banks Must Board The Blockchain Bus

Big banks do not gamble. And when some of them quietly start investing large amounts in a certain sector, you may want to dig deeper.

Around the world, some of the most conservative institutions, including big financial firms, are investing significantly in blockchain companies as a well-thought-out move to stay competitive and offer better services.

Indian banks, on the other hand, have been hesitant and cautious in this area, but this global change in mood should be a wake-up call for them.

So let’s first find out what is happening here.

$100-Billion Move

A fresh report from cryptocurrency group Ripple reveals that between 2020 and 2024, global banks took part in 345 investments in blockchain companies.

Citigroup and Goldman Sachs led the pack with 18 investments each, followed closely by JPMorgan Chase and Japan’s Mitsubishi UFJ Financial Group with 15 apiece, says the report published in the first week of August 2025.

The combined funding into the sector during that period exceeded $100 billion.

These hardly sound like whimsical pursuits by a bunch of financial dilettantes. They are planned investments because about 90% of finance leaders surveyed in the report say that blockchain and digital assets will have a significant impact on finance within three years.

Follow The Money

If you look closely, you will find that the investments by global banks are mostly aimed at improving their services and infrastructural security.

According to the report, nearly a third (27%) of investments have gone into building the core systems that make digital finance work. They are platforms for trading, earning rewards (also called staking) and turning assets like property or gold into digital tokens (called tokenisation).

Another 24% is going into payments technology that can send money anywhere in seconds, and 21% into secure digital vaults (technically called custody) that keep people’s cryptocurrencies and tokenised assets safe from hackers or loss, the report reveals.

These investments clearly show that blockchain is no longer just an experiment; it is now changing the face of modern finance.

Additionally, foreign banks aren’t just investing in blockchain companies; some of them have already integrated the tech into their systems.

For example, JPMorgan has launched the Kinexys network for tokenised deposits. HSBC has rolled out tokenised gold for retail investors in Hong Kong.

Similarly, in March this year, Japan’s SBI Group took a majority stake in Germany’s Solaris, a fintech company that has helped launch the country’s first security token offering (STO).

Using STOs, companies can raise money by selling digital tokens that represent a piece of ownership in a company, real estate, or even art.

India Missing The Bus, Again?

To be fair, India has taken a few small steps in this direction. The Reserve Bank of India has launched its Central Bank Digital Currency (CBDC) on blockchain, and many institutions such as IndusInd Bank have already used it.

Some private banks have also tested the technology for trade finance, cross-border payments, and KYC, but there is still no big investment or partnerships with blockchain companies. In fact, a news report published just three months ago says that Indian institutions are still “experimenting” with the technology.

But it need not stay that way because this complacency could come at a great cost as we’ve seen before with AI.

India had a golden opportunity to lead in generative AI. It had the talent, the IT services network, and the global credibility.

Yet, because there was no early national push to develop core models or own the platforms, India is now largely a user of foreign AI tools rather than a creator.

That’s the price of sitting out the early innings. We can’t afford a repeat with blockchain.

The good news is that they don’t have to go for buyouts straight away. Even partnering could work. The Ripple report shows that Global Systemically Important Banks, also called G-SIBs, often partner with blockchain start-ups rather than buying them outright.

It’s definitely a lower-risk route Indian banks can adopt to build capabilities now.

Final Words

Yes, India has been a bit slow when it comes to blockchain, but you can’t blame institutions alone for not being proactive. Part of their hesitation stems from regulatory ambiguity.

While the global banking giants are benefiting from clearer frameworks, such as the EU’s Markets in Crypto-Assets Regulation (MiCA), India is still waiting to get its digital assets law.

We need to remember that inordinate delays carry risks. By the time regulatory clarity arrives, the global leaders will have cemented their positions, refined their infrastructure, and captured the early-mover advantage.

As a result, Indian banks could once again find themselves playing an expensive game of catch-up — much like we are with generative AI.

This series is brought to you in partnership with Algorand.