The institutions are coming they're Coming they are coming and it's Happening before your very eyes right There on chain large Fortune 500 Companies have been launching their own Crypto projects in fact according to a Recent research report the first quarter Of this year saw the most adoption Growth ever in history if you want to Take advantage of this Monumental Trend Then you need to know where to look That's why you'll want to watch this Video now the research report in Question was done by coinbase and it was Released about a week ago I will leave a Link to it in the description for you Guys to come back and read later as we Break down the report I will also give You some of my own thoughts about it uh But as always I am not a financial Adviser in any way shape or form clearly So please consult your investment ad Visor before diving into the crypto Waters with that out of the way let's Get into it the report starts over here With some high level statistics 39% That's the increase in Fortune 100 Companies that are launching onchain Projects 56% that's the number of Fortune 500 companies saying that they Have onchain projects 1,000% now that's the increase in Tokenized t- bills and I actually had to Double check can make sure that that
Checks out and it does pretty wild 150 Billion that's the total in stable coin Transfers and 53% the number of small Businesses that are looking for crypto Savvy highers and the not so pleasant Statistic 14% that's the market share of Developers the US has lost to other Markets over the years now the reason Why some of these stats may have been Flying under the radar is because most Of the news flow over the past couple of Months has mostly focused on spot Bitcoin ETFs now while these have been Massive over $60 billion in AUM much of The other adoption that has been taking Place has been overlooked large Institutions have also been aggressively Expanding their tokenization initiatives This real world tokenization is Something I actually talked about in a Recent video on crypto narratives which Will of course be left in the Description for you guys one of the Fastest growing assets being tokenized Right now is us us treasuries which now Stands at over $1.2 billion a great deal Of that is thanks to tokenization Projects by Black Rock and Franklin Templeton oh and um fun fact the ticker For the Black Rock fund is Biddle and The one for the Franklin Templeton fund Is Benji one of us the increase in use of Stable coins also makes sense I mean why
Would you want to pay uh 4 to 6% to send Money abroad when you can just pay eth Gas fees or maybe salana Fees gas fee shade aside data from the Block estimates that the total stable Coin settlement volume could reach $10 Trillion by the end of the year but Perhaps the most encouraging stat from This page is the fact that it's not only Massive multinational corporations that See the promise of blockchain tech but Also small businesses about 68% of small Businesses believe that crypto can solve Some of their pain points I mean this is Pretty obvious when you think about it For anyone who has had to rely on Traditional payment services for their Businesses they know how high those Merchant fees are and then there are of Course some of those businesses that Can't even get a bank account but I mean That's a topic for another video anyways From more encouraging statistics to Slightly less encouraging ones the US is Losing Dev Talent this was highlighted In an electric Capital developer report Earlier this year which showed that only 26% of devs are now based in the US and This is down considerably from a few Years ago how do we solve this well how About politicians quit throwing at Their industry how about the SEC quits Throwing lawsuits at them for writing Code or Worse throwing them in jail
Rance aside if you enjoying this video So far then help give it a boost with a Like uh make sure to subscribe and ping That ringing Bell so that YouTube can Give you a ring as well lots of exciting Coin buau content coming your Way so ma'am where exactly were you on The night of the murder I was right here Detective all night long you got anyone Who can back that up you mean an alibi Yeah that's the one no I was all on my Lonesome and what exactly were you doing All on your lonesome if you don't mind Me asking well keep it under your hat Detective but I was looking through the Coin Bureau deals page what's a coin Bureau deals page when it's at home it's Only the place where you'll find the Best discounts and Promos in all of Crypto what do you mean I mean tradeing Fee discounts of up to 70% and sign up Bonuses of up to $100,000 on some of the best exchanges Holy smokes they got discounts on Hardware wallets too by any chance they Sure do detective like you wouldn't Believe well that sure sounds kind of Swell lady but just you give me one good Reason why I should believe a single Word you say you don't have to take my Word for a detective take a look at the Link down below and see for yourself she Wasn't kidding those deals really were Something else turns out that crypto
Ain't such a bad place after all you Just got to know your way Around anyways back to the report this Chart over here breaks down the number Of onchain initiatives by industry type In the Fortune 100 as you can see they Are predicting that Q2 of this year Could see up to 20 companies launching Projects that's the most ever they are Still missing a few months of data Though but um that's a minor detail Another important stat here is that most Of these initiatives are in their Advanced stages 59% of all projects and More and more companies are talking About crypto in their SEC filings this Number also hit an alter time high in q1 That aside what's perhaps the most Interesting is that although there have Been a lot of companies in different Sectors that have experimented with Crypto those that are in Tech and Financial services seem to be the uh Predominant companies adopting it at Least right now you can see the Breakdown of the use cases over here It's quite clear that payments trading And ETFs are driving most of the used Cases anywh who an encouraging sign is That these for 500 companies are Dedicating more resources to their Crypto initiatives and are going to be Spending a lot more money on it here are Some of the reasons as to why they are
Bullish but they also mention that there Are challenges to Rolling these out Again top of mind is that lack of talent That we mentioned earlier and that's Closely tied to another big concern lack Of Regulation it just goes to show a Regulation by enforcement is a FSE Moving on this next section also has Some juicy figures 7 out of 10 that's The companies that are interested in Learning about stable coins 86% that's The amount that see the potential Benefits of asset tokenization and 35% The number that say their companies are Planning tokenization and over here they Have a breakdown of what these Fortune 500 companies think the benefits and use Cases of this technology They seem to place an overwhelming Emphasis on speed as it's mentioned as The primary benefit for both technology Classes and second to that is uh costs Interesting over here they talk almost Exclusively about stable coins according To remittance data from the world bank Stablecoin transfer volumes hit $10 Trillion in 2023 and that's over 10 Times more than remittances worldwide And here's another min blowing statistic The amount of treasuries held in reserve By Circle and tether are greater than Those of the Holdings of countries like Norway Saudi Arabia and South Korea they Do mention that it's surprising to have
Seen this growth despite the lack of Clear regulations around these Instruments which something I tend to Agree with what I don't tend to agree With though is the fact that tether has Purely grown because of the regulatory Vacuum it has operated in sorry to say But it's mainly because people prefer Usdt as a stable coin sorry Circle and Coinbase check your bias in your reports Here they have two examples of case Studies with coins that have been Launched in the past few years by Fortune 500 companies firstly there is PUSD that was launched by PayPal and Later on venmo and this has gained an Impressive $400 million market cap in a Matter of a less than 10 months I'm Curious though have any of you used the Py USD stable coin because I haven't Personally but it seems to be gaining Traction so I'm Keen to hear from people Who've actually used it another case Study is that of JP Morgan's JPM coin if You will recall JP Morgan first rolled Out their Quorum blockchain back in 2016 It's basically a permissioned version of Ethereum it was one of the first Enterprises to use a permissioned Blockchain which is kind of funny when You think about how anti- crypto Jamie Diamond is but be that as it may um Quorum evolved into Onyx which uses JP Morgan coin or JPM coin as an interbank
Settlement currency given that it is Permissioned and not public we don't Know exactly how much has been run on it But according to some um bragging by JPM Executives it handles $1 billion of Daily transactions and they expect that To rise to $1 billion in the next 2 Years the next section is all on Tokenization of assets that aren't Stable coins quite simply real world Assets if you watch the aformentioned Video on crypto narratives you will have Seen me quoting a BCG report on rwas in It they predicted the tokenized asset Market to grow to $16 trillion by 2030 For context that's the size of the eu's GDP mind blown To be honest though they should just Tokenize the entire EU economy Verifiable growth metrics on Chain now the growth of nonstable coin Tokenization has also been quite Impressive according to data from Dune Analytics it hit $3 billion this year Which is roughly a doubling from 2023 this could even be an underestimate Given that many of these tokenized Assets are not on public chains part of The reason t-il tokenization has been Such a success is because of the higher Rates environment over the past year We're at 30-year highs investors are Looking for open transparent efficient Ways to own these assets after
Government securities the next most Popular asset for tokenization is Commodities I remember back in 2019 when Pax orus paxg tokenized gold first hit The market there were many other Projects which were looking to allow the Physical Redemption of of this yellow Metal indeed tether also seems to have Jumped into the tokenized gold market With just a few days ago the release of Xut the third most tokenized asset is Loans I.E private credit according to Data from June analytics this went from Near zero in October 2020 to over 400 Million in April of this year over here They have a chart of the market cap of All tokenized government securities by Issuer as you can see there is a jump in Black Rock's share and that's just Because they made a large Strategic Investment in securitize one of the most Prolific issuance platforms out there uh It's pretty solid move by Black Rock I Must admit Larry think is taking over Moving on to the next section and this Is one of the most interesting of the Whole report and that's because it looks At the in real world perceptions of Crypto from small business owners as Mentioned earlier many of them are Looking for crypto experts in their Hiring procedures but beyond that half Of these small businesses think that Adopting stable coins will open them up
To new business which of course does Make sense and that's because Transaction fees and processing times Are a massive pain about 68% believe That crypto can help address one of Their financial pain points over here They go through a few small businesses And projects using blockchain one of Them is a COA which tokenizes health Records this actually makes sense when You think about it and consider that These records have to be permanent it Also allows Public Health officials to Get a snapshot of General Health among The population another project which They mentioned is Banu which helps small Farmers get access to the financial System uh through blockchain counting Payments etc etc and then there is a Company called queen of raw which is a Pretty cool name now this leverages Blockchain Tech to help companies track Their Infantry and ensure that they are Making the most of the fresh produce Before it goes to waste finally they Have a pretty cool case study over here Of Campus coffee which is a coffee chain Based in the Washington DC area of all Places they lose Revenue every year to Those credit card processing fees and They have entered a partnership with Coinbase Commerce to offer stable coin Payment options perhaps if there are any Lawmakers dropping in for their soy
Lattes then compass coffee can preach The good word of crypto to them okay It's now time for the most important Section what does this report tell us And what do we think about it firstly It's incredibly encouraging to see that Real world institutional adoption is not Just a meme it's it's actually happening And it's not just buying crypto and Holding it it's using the blockchain to Issue Securities make payments and solve Numerous different pain points these Companies have I mean to have 56% of Fortune 500 companies developing onchain Projects the majority of which are in a Late stage is something I really never Expected to see I also expect this trend To only accelerate in the coming years And this is especially the case for Those onchain treasuries I also want to See um extensive growth in other fixed Income assets and securities such as Corporate bonds private credit and other Types of loans that's just because they Are a fully transparent immutable record Of the loan it's also really encouraging To see that there are smaller companies And businesses that see the need for Crypto and blockchain Tech all of this Being said uh there are still challenges I mean for one there is the fact that The predominant use case still seems to Be for payments and tokenization there Are many other use cases for blockchain
And it would be great to see these Companies explore them it would also be Good to see companies outside of tech And financial services using blockchain They were happy to experiment with it in Previous quarters but appear to have set The most recent quarter rout finally It's also clear that there are Challenges posed to broader adoption These mostly center around regulation Where the lack of clear guidelines has Not only led to a hesitance of continued Adoption but also a slow bleed of talent Overseas the war on crypto is leading to An unfortunate attrition with all that Said what does this broader trend mean For us in the crypto ecosystem and how Can we benefit from it well what this Report has clearly demonstrated is that The rwa space has some strong potential However most of these projects and Initiatives appear to be on the Propriety chains of large companies JP Morgan or issued on large public Networks a Biddle fund on ethereum for Example however there are a number of Rwa projects out there that operate as a Sort of intersection between large Corporations and Retail Ono Finance is Still perhaps the best example here and It is the third biggest issuance Platform after Black Rock and Franklin Templeton there is a governance token Attached to it but uh it has no use
Cases apart from well I mean governance So while it may be an interesting beta Play on its growth do note that it's not Guaranteed the same can be said for Maple finance and many other uh open Issuance platforms but if you aren't as Keen on betting on governance tokens of Newer issuance platforms then you may Just want to consider buying the Underlying infra most of these tokens Are issued on and currently this appears To be the ethereum Blockchain so is eth the ultimate rwa Play well there are many other factors That you should factor into an eth Investment and we actually have a video Coming on that in the next few days so Keep your eyes peeled for That and that's it for my video today But it's not complete without your all Important feedback so um let me know What do you think of the rwa space do You think that corporations will Continue the adoption and what are your Favorite rwa plays let me know down in Those comments below either way I hope This video was helpful give this crypto Champ a like if you liked it and a sub If you loved it oh and um don't forget Those notifications you don't want to Miss what else we have coming through Cheerio from this Crypt bro [Music]
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