Institutions & Corporations Embracing the Metaverse Habitat

New York City : The Crypto ecosystem has reached almost a trillion dollar today with more than 300 million users globally. The Crypto market which was initially lucrative to individuals has gripped it’s tentacles spreading deeper in the institutional gamut. The corporates financial houses, which were cynical of venturing into this space has gladly embraced the Metaverse.

We would today explore the various reasons behind this change, Which segment of the industry is banking on the Crypto growth and how the entry of these big corporations can bring a difference in the trade.

First, Why the Change!

1. Its observed that many financial gateways like PayPal, has approved transaction for Cryptocurrency, enabling it’s consumers to access the various Blockchain and trade for it.
2. The decentralized finances (DiFi) has authorized traditional financial transactions to take place on Blockchains with the use of smart contracts. The DeFi is yet to show colored; as it grow old the scope of DiFi would transgress the crypto space pulling in enormous wealth in the sector.
3. Yield Farming an application of DiFi allows lending the Crypto in exchange for interest or other Cryptocurrency, homogeneous to digital banking.
4. Decentralized Exchanges (DEX) have a considerable contribution due to which Large corporations are turning and tuning to this new space. DEXs allow to trade without a mediator rendering complete ownership to control their assets. Exchanges like Uniswap and SushiSwap are creeping fast to grab the majority market share, wherein, SushiSwap registering a growth of 1700% in last 5 years.
5. Everything can be tokenised with NFT (Non Fungible Token) these days, representing digital claims to unique things or assets like paintings, digital artworks, music compositions, even stories too.

Since August 2021, approximately 23 banks have made at least one investment in blockchain / crypto-linked entities. Six of these transactions involved new investors making their first forays into the ecosystem, with the rest involving returning investors such as Morgan Stanley, BNY Mellon, and Goldman Sachs.

Based on the number of investments in blockchain companies, the most active investors are KB Financial Group (8), United Overseas Bank (7), Citigroup (6), Goldman Sachs (5), and Commonwealth Bank of Australia (5). (4). Please keep in mind that the total deals include any investments made by the aforementioned organisations as well as subsidiaries and the corporate venture arm.

The crypto asset class had received $15 billion in institutional assets under management, since 2019.

Conclusion

The large corporations contributing to the crypto economy is going to turn the face of this ecosystem in a revolutionary fashion. These big houses are seen not just acquiring crypto assets, but trading and investing in unique NFTs and buying the virtual spaces too, denoting the beginning of a Golden Era in the Blockchain Technology.