Coinbase’s latest report on the state of adoption in the crypto world showed that more than half of the largest companies in the US, according to the Fortune 100 ranking, are planning to invest in blockchain, crypto or Web3.
While there are still a lot of challenges in the US crypto industry, such as the lack of clear regulations, the adoption trend seems to be growing.
Full details below.
Summary
Coinbase: more than 50% of the largest and best-known companies in the US are investing in blockchain
Yesterday, Coinbase released a report in collaboration with The Block, titled “The State of Crypto: Corporate Adoption“, in which they outlined the state of adoption of the blockchain, web3 and cryptocurrency industry within the United States, taking the largest and best-known companies as reference.
According to the study, as of 2020, 52% of Fortune 100 companies have developed blockchain-related initiatives or are planning to invest in it.
If we look at the data from Q2 2023 onwards, we can see that 70% of this ranking is already actually actively working in the field.
Fortune 100 represents a ranking, compiled by Fortune magazine of the same name, that lists the top companies in the US in terms of revenue.
At the top is Walmart, followed by Amazon, Exxon Mobil and Apple.
The fact that the top companies in the US are interested in the crypto industry is a great cue on which to analyze the state of industry adoption.
According to Coinbase:
“These companies are innovating and investing in these technologies because they know that the century-old global financial system needs updating, that blockchain can be a foundational solution, and that not keeping pace will mean losing ground in this global economy to competitors around the world, among other possible reasons.”
As of 2017, Fortune 100 companies have made 109 capital investments in 80 blockchain-themed startups, with a total value of $8 billion.
In addition, Coinbase noted that in the Fortune 500 ranking, about 64% of executives at these companies have a basic understanding of crypto and blockchain and want to invest, or are already doing so, in the sector.
These have allocated an average investment budget of about $5.8 million, with expectations of an increase between now and the next two years.
Coinbase believes that clearer regulation in the US would boost the country’s technological development
Within its report, Coinbase considered the regulatory factor as one of the biggest obstacles facing the US to ensure adequate adoption of the blockchain industry and compete with the rest of the world.
In fact, regulatory uncertainty and lack of clear rules, disincentivize companies from investing in the cryptocurrency industry, which is already risky in itself for obvious reasons.
In particular, 87% of executives surveyed believe that clear rules with no gray areas are essential to enable the United States to maintain leadership in the global financial system.
In this regard, Coinbase in its study stated that:
“The US 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.”
In the past 6 years, the country’s share of development for Web3 projects has dropped from 40% to 29%, with an increasing shift of interest in jobs and investment abroad.
The SEC‘s latest tyrannical moves against major cryptocurrency exchanges have only increased the perception of a lack of regulatory clarity in the sector to investors and companies.
Clashes by Gary Gensler and the entire federal agency against the crypto industry could have serious repercussions on the country’s economy for the next decade.
Beyond that, it is worth noting that the majority of Fortune 500 executives, 73% to be precise, said they would prefer to work on crypto projects with a company based in the US.
The United States remains the home of the technological vanguard today, and is still one of the most dominant countries in this context, even in the face of hostile and contradictory regulations.
As a result, it is more likely that the country will continue to develop and be a hub for the blockchain and Web3 industry, despite seeing its market share decline and with a flight abroad of the brightest minds.
The attractiveness of the NFT market for companies in the US
The final focus of Coinbase’s report, in collaboration with blockchain analytics firm The Block, is on the NFT market, which is increasingly attractive to companies in the US.
In particular, non-fungible tokens could be the connection between companies and customers in a period of transition to a more decentralized world centered on cryptocurrencies and blockchain.
Thanks to NFTs, many Fortune 100 companies are experiencing surges in web3 initiatives with retail entities.
Exposure to this niche of the market is very attractive to US companies because in addition to diversifying their investment in the sector, it offers short-term monetization paths.
In this regard, Coinbase’s study shows how Fortune 100 companies, through 199,347 NFT-themed transactions, have accumulated royalty income of approximately $101.3 million.
If we look at the total investments made by these companies, we realize how 11% are based precisely in the world of non-fungible tokens, while financial services make up 24%.
DeFi, so widely acclaimed as the finance of the future and so much pushed during the 2021 bull run, is given little consideration by US companies, which have invested only 1% of their blockchain-allocated budget in it.
Some of the more interesting initiatives to note in the NFT niche include the collaboration between Nike and EA Sports to integrate the technology within video games and Lowe‘s project to create a traceable and secure record of purchases for its customers, facilitating the company’s transparency.
According to data from The Block and Coinbase, the company that has developed the most NFT collections is Nike, followed by The Magazine, Dolce & Gabbana, and Adidas.
