Most Fortune 500 Companies Test Web3 and Blockchain Technology, Coinbase Report Suggests

The cryptocurrency sector, currently valued at around $2.46 trillion, is starting to garner interest from profitable institutional investors. In its latest report titled “The State of Crypto,” Coinbase claims that 56% of Fortune 500 companies are, in one way or another, testing blockchain technology. Creating the core technology for cryptocurrencies, NFTs and the metaverse: Blockchain technology is also called distributed ledger technology that saves data and facilitates technological procedures through small separate nodes, replacing traditional servers.

Coinbase highlights the key factors that attract large companies to Web3

THE research was conducted for Coinbase by The Block, which interviewed executives working at Fortune 500 companies. The findings of this report suggest that on-chain projects, including consumer-facing payment applications, have begun to attract attention of these large companies.

“Many of the most trusted names and products in the financial sector are embracing blockchain technology and cryptocurrencies, driving innovation and providing on-ramps for widespread adoption,” the report states.

This year the US SEC approved ETFs for Bitcoin and Ether in a historic move. This allows interested investors to engage with cryptocurrencies through traditional stock market platforms rather than having to sign up cryptocurrency exchanges. According to the report, the approval of these ETFs has facilitated access to cryptocurrencies, spurring their adoption.

Institutional investors are also looking into real-world asset tokenization, which is a process of creating digital units of a physical or virtual property where each of the tokens represents a certain percentage of the entity. According to the report, “in addition to ETFs, on-chain government bonds are attracting new interest in asset tokenization in the real world. Recent high interest rates have spurred demand for safe, high-yield on-chain Treasury bonds.” The increase in value of tokenized treasury bills has reached the valuation of $1.29 billion (approximately Rs. 10,776 crore).

Catalysts in favor of the merger of large companies with Web3

Numerous online payment apps in the US are integrating crypto transfer services into their existing offerings. These platforms include PayPal and Stripe among others. These platforms allow the use of fiat currencies, as well as stablecoins and select cryptocurrencies to facilitate instant payments, including cross-border.

“PayPal supports cross-border transfers of stablecoin users in approximately 160 countries – with no transaction fees, compared to 4.45%-6.39% average fees in the $860 billion global remittance market. Annual stablecoin payment volume has reached $10 trillion in 2023, more than 10 times the amount of remittances worldwide,” the report notes.

Online payment companies also take a positive approach towards cryptocurrencies blockchainlarge companies do not hesitate to experiment with financial agreements based on cryptocurrencies.

The future of Web3 in the legal and business sectors

With more funding poured into Web3 at an institutional level, the report says, this could become an important factor that would push global financial regulators to introduce clear laws to oversee the digital asset sector.

“The United States must exercise leadership in this area. F500 executives show significant interest in this space: 79% would like to work on initiatives with a partner in the United States. The increase in activity increases the urgency for clear cryptocurrency rules that help retain cryptocurrency developers and other talent in the United States, deliver on the promise of better access, and enable U1 leadership on cryptocurrencies globally,” look at the report.

The report estimates that even small businesses are considering moving to Web3. Seven out of ten small businesses interviewed for this research said cryptocurrencies can help “at least one of their financial pain points, the biggest of which are transaction fees and processing times.”

Disadvantages with Crypto

While blockchain technology has intrigued several nations, cryptocurrencies have been met with a skeptical approach. This is mainly due to the fact that although blockchain offers better data security and greater transparency of transactions, cryptocurrencies are volatile in nature and prone to misuse for illegal structures.

In March 2024, the The FBI said so that cryptocurrency investment scams have increased by 53% in the last year.

To curb cases of misuse of these advanced technologies, Web3 industry players such as Meta, Ripple, Kraken and Coinbase have launched awareness initiatives.

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