This transformative journey is underscored by major players like PayPal and JPMorgan, each pioneering in their own right. Traditional financial giants are also embracing blockchain technology. Let’s discover more about the COINBASE report.
Digital Payment Innovators: PayPal and JPMorgan Lead
In August 2023, PayPal made a groundbreaking move by launching PayPal USD (PYUSD). It is a stablecoin secured by US dollar deposits and short-term US Treasuries, on the Ethereum network. This initiative, developed in collaboration with Paxos, quickly gained traction, reaching a circulation of $400 million within just 10 months. Notably, PYUSD achieved a record daily trading volume of $60 million in April. Despite recent regulatory scrutiny, including a subpoena from the SEC, PYUSD remains operational.
In contrast, JPMorgan has been a stalwart in the digital asset space since 2015, leveraging its Quorum blockchain and establishing Onyx. Onyx is a dedicated digital asset business unit, in 2020. Central to Onyx’s portfolio is . JPMCoin is a blockchain-based payment system facilitating intrabank transactions.
According to Coinbase’s report, the broader tokenized asset market is poised for explosive growth, projected to reach $16 trillion by 2030. This is equivalent to the current GDP of the European Union. This sector has seen the total value of tokenized non-stablecoin assets exceed $3 billion, more than doubling since early 2023. Here is a chart about the marketcap of tokenised assets:
Source: Coinbase Report
Redefining Investment Access: Tokenizing Government Securities
Government securities lead real-world asset tokenization, led by firms like BlackRock and Franklin Templeton. These firms have capitalized on blockchain technology to democratize access to traditionally exclusive investment opportunities, such as US Treasury money market funds. Franklin Templeton’s FOBXX, for instance, was tokenized to broaden investor accessibility and enable seamless trading on public blockchains like Stellar and Polygon, reflecting a strategic pivot towards DeFi.
Similarly, BlackRock made headlines with the launch of its BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on Ethereum in March 2024. This innovative fund, developed in partnership with Securitize, offers qualified investors stable US Treasury yields with the convenience of blockchain-based transactions. BUIDL has quickly become a dominant player in the $1.3 billion tokenized US Treasury market, showcasing institutional confidence in blockchain’s transformative potential. Here is a chart about the marketcap of tokenized government securities:
Source: Coinbase Report
Beyond institutional giants, small businesses in the US are increasingly embracing crypto and blockchain technology to address financial pain points such as high transaction fees and slow processing times. A significant majority of small businesses view crypto adoption as a gateway to unlocking new business opportunities, driven by its efficiency and cost-effectiveness.
Moreover, the integration of blockchain technology into everyday business operations is reshaping recruitment strategies, with over half of small businesses prioritizing crypto knowledge in prospective hires for finance, legal, and IT roles. This shift underscores the growing demand for skilled talent capable of navigating the complexities of digital finance.
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
