Fortune 100 companies have stepped up their involvement in cryptocurrency, blockchain, and web3 initiatives by 39% from the corresponding period of last year in the first three months of 2024. This increase signifies a new record in corporate participation that enhances these advanced technologies. Research by Coinbase and The Block established that more than half of the Fortune 500 firms are exploring chain solutions, including payment apps that target consumers.
The rising involvement of enterprises underscores the need to mitigate the need for clear, far-reaching norms and standards to keep cryptocurrency developers and other talented professionals in the United States. This is important to ensure that cryptocurrencies can deliver on the promise of increasing access and enabling the U.S. to set the pace globally. It is significant to highlight that people in the world of finance are enacting blockchain technology and cryptocurrency within their companies, thus leading to its development and creating opportunities for its usability.
Great progress has been made in the field regarding the successful implementation of spot bitcoin exchange-traded funds (ETFs), which have attracted much attention. Currently, these ETFs have total net assets of over $63 billion. Apart from this, the U.S. Securities and Exchange Commission (SEC) has recently approved spot ether ETFs for listing and trading while waiting on S-1 approval. This will increase the availability of cryptocurrencies for investments through favourable and reputable financial products.
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Beyond ETFs, the market for on-chain government securities has grown rapidly in recent years. This has been contributed to by the high interest rates that have created demand for safe and relatively well-paid instruments such as T-bills. Therefore, tokenized U. S. Treasury products have experienced massive growth in their market capitalization, exceeding 1000% since January 2023 and currently standing at $1.29 billion. For instance, BlackRock has developed a tokenized U.S. Treasury fund that enjoys the largest numbers of investors, more than Franklin Templeton’s type of fund. Hedge funds and market makers in the cryptocurrency space are now relying on these products as a means of trading coins and tokens.
Further, global payment giants such as PayPal and Stripe are also seriously moving toward enhancing the usage of stablecoins. Through its partnership with Circle, Stripe has made it easy for merchants to begin accepting payments in USDC via different blockchains and cash them out immediately with fiat money. To increase business in the $860 billion remittance market at a cheaper fee compared with its competitors, PayPal has announced that it will not charge any transaction fee for cross-border transfers made using stablecoins.
The report also considers the contribution of small businesses to the cryptocurrency market. About 68% of the small business owners who were interviewed opined that there is potential in cryptocurrencies to solve some of the major financial challenges like transaction costs and time. However, the problem of sourcing talent continues to be acute, and the U.S. has seen a rather significant drop in its share of crypto developers. Currently, only 26% of the developers involved in the crypto market are based in the United States, and the issue of talent is now a more significant problem for the management of Fortune 500 than the regulation issue.
Concerning global competitiveness, 79% of Fortune 500 executives stated that they are inclined to engage in initiatives with partners in the U.S., and 72% opine that having a USD-backed digital currency is highly important for maintaining a competitive economy in the U.S.
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This latest report from Coinbase is part of a campaign to demystify the functions of crypto, blockchains, and Web3 in modernizing the global financial system for the benefit of businesses and the general consumer. As these technologies advance, it is critical to develop an appropriate regulatory framework that would encourage the development of these sectors while keeping access and equity at heart.
