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Source: Coinbase; Compiled by Deng Tong, Bitchain Vision
Preface
Top American listed companies are busier on the chain than ever before.Fortune 100 companies announced on-chain projects up 39% year-on-year and hit an all-time high in the first quarter of 2024.A survey of Fortune 500 executives found that 56% said their company was working on on-chain projects.From the largest traditional brands to small businesses, from stablecoins to tokenized treasury bills, trusted brands and products in the financial sector are embracing blockchain technology and cryptocurrencies, driving innovation and providing an entry for widespread adoption.The increase in activity underscores the urgency of developing clear cryptocurrency rules that help keep cryptocurrency developers and other talent in the United States.
According to the research conducted by The Block for Coinbase,The number of cryptocurrency, blockchain or web3 plans announced by Fortune 100 companies increased by 39% year-on-year and hit an all-time high in the first quarter of 2024.A survey of Fortune 500 executives found that 56% said their company was running on-chain projects, including consumer-facing payment apps.The increase in activity underscores the urgency of developing clear cryptocurrency rules that help keep cryptocurrency developers and other talent in the U.S., fulfill the promise of better access to cryptocurrencies and put the U.S. in the global cryptocurrency space.Leading position.
Many of the most trusted names and products in the financial sector embrace blockchain technology and cryptocurrencies, driving innovation and providing an entry for widespread adoption:
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Of course, spot Bitcoin ETFs have emerged—and demand has been suppressed.Today, the total assets managed by spot Bitcoin ETFs exceed $63 billion [2].On May 23, the U.S. Securities and Exchange Commission approved an application for exchange-listing and trading spot Ethereum ETFs (waiting for S-1 approval), further expanding access to spot cryptocurrencies of familiar, trustworthy products and stimulating adoption.
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In addition to ETFs – on-chain government securities are driving new interest in real-world asset tokenization.Recent high interest rates have stimulated demand for safe, high-yield on-chain Treasury bills,The value of tokenized U.S. Treasury products has increased by more than 1,000% to $1.29 billion since the beginning of 2023[3].BlackRock’s tokenized U.S. Treasury Fund BUIDL, which is $382 million, recently surpassed Franklin Templeton’s $368 million fund to become the largest fund; crypto hedge funds and market makers are using BUIDL as trading coins andToken collateral [4].By 2030, the tokenized asset market is expected to reach US$16 trillion—the equivalent of the current EU GDP [5].
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In addition to Coinbase, global payment giants PayPal and Stripe are also making stablecoins easier to use.Through Circle, merchants on Stripe can now accept USDC payments through Ethereum, Solana and Polygon – payments are automatically converted to fiat currency.PayPal supports cross-border transfers by stablecoin users in about 160 countries – no transaction fees are required, while the average fee for the $860 billion global remittance market is 4.45% to 6.39% [6][7].In 2023, the annual settlement volume of stablecoins will reach US$10 trillion, more than 10 times the amount of global remittances.
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Progress is not only top-down, but also bottom-up: Small businesses are the most trusted institutions in the United States and are also exploring in the cryptocurrency field [8].About 70% (68%) believe that cryptocurrencies can help solve at least one financial pain point, the biggest of which are transaction fees and processing time.
At Coinbase, we appreciate the progress tradfi has made in updating the system and draw some key points from the data:
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The United States must cultivate talents that are increasingly needed, rather than continue to lose them overseas.The share of U.S. developers continues to decline, down 14 percentage points over the past five years;Currently only 26% of crypto developers are in the United States[9].Among Fortune 500 executives (F500), concerns about available, trustworthy talent are now the biggest obstacle to adopting encryption.Rather than concerns about regulation.Among small businesses, half say they may look for candidates familiar with cryptocurrency the next time they take a financial, legal or IT/technology position.Clear encryption rules are the key to retaining American developers—and the key to the United States continuing to lead the world in cutting-edge technological innovation.
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It is also crucial to ensure that the technology meets its commitment to providing better access——Whether it is for crypto-using companies that need financial services, or for vulnerable groups that need financial services.For those underserved and without banking, about half (48%) of F500 executives said crypto could increase access to the financial system and the ability to create wealth.For companies using cryptocurrencies, a F500 executive noted that banks can encourage innovation by finding more ways to work with them.
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The United States needs to play a leading role in this area.F500 executives show strong interest: 79% want to work with U.S. partners on the program (up from 73% a year ago), and 72% agree to own a dollar-backed digital currency (relative to Japanese) can keep the US economy globally competitive.
Cryptocurrencies are the future of currency.This research report is our fourth report since June 2023 and an annual review of business adoption. It is the latest report released by Coinbase in our comprehensive event to educate the public about cryptocurrencies, districtsBlockchain and other web3 technologies can play a role in updating the global financial system, benefiting businesses and consumers.
References
1. June 1, 2023 through May 31, 2024 vs June 1, 2022 through May 31, 2023
2. As of May 31, 2024
3. As of May 31, 2024
4. Financial Times, May 14, 2024
5. Relevance of on-chain asset tokenization in ‘crypto winter,’ BCG x ADDX
6. The World Bank
7. The World Bank
8. Gallup
9. Electric Capital’s Developer Report: January – December 2023
