In a recent report titled “The State of Crypto,” released by Coinbase in partnership with The Block, it was revealed that 53% of Fortune 100 companies have embraced crypto, blockchain, and web3 technologies. The primary motivation? Staying ahead in the global economy.
These corporations, the 100 largest public and private companies in the United States, understand that our century-old global financial system needs updating. They see blockchain as a foundational solution and recognize that not keeping pace will mean losing ground in this global economy to competitors from around the world.
The State of Crypto: Key Findings
The report explores the growing embrace of crypto, blockchain, and web3 by Corporate America since 2022. It takes data from both Fortune 100 and Fortune 500 companies and looks at what’s driving this development, explores trends in investment and innovation, and examines how continued regulatory uncertainty may affect all facets of crypto and web3.
The report shows that most executives are acutely aware of the transformative power of web3 technology, realize they need to adopt it to stay competitive, and are willing to put their money where their mouths are by investing in the sector. Yet, one of the largest barriers to adoption is the unclear regulatory environment in the United States.
The U.S.’s share of global web3 development has dropped from 40% to 29% in the last six years. According to the report, the U.S. is at risk of losing out on 1 million web3 developer jobs and 3 million related non-technical jobs to other countries between now and 2030 if it continues on its current path of regulation by enforcement.
Who’s Adopting Crypto?
Unsurprisingly, the vast majority (around 75%) of crypto activities are taken up by companies in tech, financial services, and retail since Q1 of 2020. Among the top 10 Fortune 100 brands in terms of volume of web3 initiatives, you have companies across four sectors: tech, banking, retail, and beverage. These include IBM, Microsoft, Google’s parent company Alphabet, Goldman Sachs, JPMorgan Chase, Amazon, Citigroup, Coca-Cola, Nike, and Bank of America.
Why Invest in Crypto and Web3?
The biggest brands on the planet understand the revolutionary potential of web3 technologies. 63% of surveyed crypto/blockchain-aware Fortune 500 executives say web3 technologies will be pivotal for business, comparing web3 to the internet or artificial intelligence. The report also suggests that AI and web3’s paths are likely to intersect, an exciting prospect.
Despite the tough macro environment, web3 venture investment by Fortune 100 companies and the overall volume of Fortune 100 web3 initiatives are building back at a respectable rate in 2023. Fortune 100 companies have made 109 private venture capital investments across 80 crypto/blockchain startups since 2017, participating in rounds totaling more than $8 billion.
Barriers to Adoption
The report identifies three main barriers to greater adoption of web3 technologies: the need for education, technical skills development, and regulatory clarity. A whopping 92% of surveyed executives urge policymakers to develop new regulations tailored to crypto, blockchain, and web3 technologies instead of relying on outdated frameworks.
In conclusion, despite the bear market and the reputational damage to the sector caused by FTX, the majority of executives interviewed know that our century-old global financial system needs updating, and they appreciate that crypto, blockchain, and web3 technology is the way to do it. The intersection between AI and crypto is a particularly interesting dimension to watch out for in the future.