Big Banks Haven’t Warmed to Crypto. Here’s Why.

Crypto might have captured the imaginations of retail investors, venture capitalists, and start-up founders, but for now, the largest financial institutions are giving it a pass.

A report released Friday by the Basel Committee on Banking Supervision found that the largest banks’ crypto exposure was worth only about 9.4 billion euros ($9.2 billion) or about 0.01% of the total exposures that banks must account for when determining capital requirements. Just two banks, which the report didn’t identify, made up 40% of the total.

The sharp rise of token prices over...