The State of Crypto: The Fortune 500 Moving Onchain

The adoption of cryptocurrency, blockchain, and web3 technologies among Fortune 100 companies has experienced remarkable growth, with initiatives increasing by 39% year-over-year and reaching a record high in early 2024, according to comprehensive research conducted for Coinbase by The Block. A detailed survey of Fortune 500 executives reveals that 56% of their companies are actively working on onchain projects, including consumer-facing payment applications and blockchain infrastructure development. This surge in corporate blockchain adoption underscores the critical need for clear regulatory frameworks that support crypto innovation, retain talented developers within the United States, fulfill the promise of enhanced financial access, and maintain American leadership in the global cryptocurrency ecosystem.

Many of the most trusted names and products in traditional finance are embracing blockchain technology and cryptocurrency, driving innovation across the financial sector and providing accessible on-ramps for widespread adoption among institutional and retail users alike:

Spot Bitcoin ETFs and Market Expansion

Spot bitcoin ETFs have materialized as a transformative development in cryptocurrency accessibility, meeting significant pent-up institutional demand. The approval and launch of spot bitcoin exchange-traded funds represented a watershed moment for mainstream crypto adoption. Currently, total spot bitcoin ETF assets under management exceed $63 billion, demonstrating substantial institutional confidence in cryptocurrency investment vehicles. Recently, the SEC approved exchange applications to list and trade spot ether ETFs (pending final S-1 approval), further expanding access to spot cryptocurrency exposure through familiar, trusted financial products. This regulatory milestone is spurring broader adoption among traditional investors who prefer regulated investment vehicles over direct cryptocurrency holdings.

These developments mark a significant shift in how institutional investors can gain exposure to digital assets. The ETF structure provides a regulated, secure, and tax-efficient method for investors to participate in cryptocurrency markets without the complexities of direct ownership, custody, and security concerns associated with holding digital assets.

Onchain Government Securities and Real-World Asset Tokenization

Beyond ETFs, onchain government securities are driving unprecedented interest in real-world asset tokenization, representing a new frontier in blockchain applications. The recent period of elevated interest rates has significantly boosted demand for secure, high-yielding Treasury bills available onchain, sending the value of tokenized US Treasury products soaring over 1,000% since the start of 2023, reaching $1.29 billion in total value. This explosive growth demonstrates the market's appetite for blockchain-based traditional financial instruments.

BlackRock's tokenized US Treasury fund BUIDL, valued at $382 million, recently surpassed Franklin Templeton's $368 million fund to become the largest tokenized Treasury product in the market. Notably, cryptocurrency hedge funds and market makers are utilizing BUIDL as collateral for trading various coins and tokens, illustrating the growing integration between traditional finance and decentralized finance ecosystems. Industry projections suggest that the tokenized asset market could reach $16 trillion in the coming years – equivalent to the current GDP of the European Union – highlighting the massive potential for blockchain technology to transform traditional asset markets.

Stablecoins and Payment Innovation

Along with Coinbase, global payments giants PayPal and Stripe are making stablecoins significantly easier to use for everyday transactions and cross-border payments. Through its partnership with Circle, Stripe now enables merchants to accept payment in USDC via Ethereum, Solana, and Polygon blockchains, with payments automatically converting into fiat currency for seamless integration with existing business operations. This innovation removes technical barriers that previously prevented mainstream merchants from accepting cryptocurrency payments.

PayPal is supporting cross-border transfers for stablecoin users across approximately 160 countries with no transaction fees, presenting a stark contrast to the 4.45% to 6.39% average charges prevalent in the $860 billion global remittance market. This fee reduction represents substantial savings for individuals and businesses conducting international transfers. The annual settlement volume of stablecoins reached $10 trillion in 2023, exceeding 10 times the total amount of traditional remittances worldwide, demonstrating the scale and efficiency advantages of blockchain-based payment systems.

Small Business Adoption and Financial Innovation

The progress in cryptocurrency adoption isn't merely top-down institutional movement but also includes significant ground-up adoption: small businesses, consistently ranked as the most trusted institution in the United States, are increasingly venturing into cryptocurrency and blockchain technology. Approximately seven in ten small business owners believe that crypto can help address at least one of their significant financial pain points, with the most pressing concerns being excessive transaction fees and lengthy processing times that impact cash flow and operational efficiency.

Small businesses are recognizing cryptocurrency's potential to reduce payment processing costs, accelerate transaction settlement, and access new customer segments. This grassroots adoption among Main Street businesses represents a crucial validation of cryptocurrency's practical utility beyond speculation and investment.

Key Imperatives for US Crypto Leadership

At Coinbase, we applaud traditional finance's progress in updating the financial system through blockchain integration, with several critical observations emerging from the research data:

Cultivating and Retaining Crypto Talent

It's imperative that the United States cultivate increasingly needed blockchain talent rather than continuing to lose it overseas. The US continues to lose its share of global crypto developers, declining 14 percentage points over the past five years; only 26% of cryptocurrency developers are currently US-based, representing a significant brain drain in this critical technology sector. Among Fortune 500 executives, concern about available, trusted talent has emerged as a top barrier to blockchain adoption, now surpassing even regulatory uncertainty as a primary obstacle. Among small businesses, half indicate they're likely to seek out candidates familiar with cryptocurrency and blockchain technology the next time they fill finance, legal, or IT/technology roles.

Clear regulatory frameworks for cryptocurrency are essential to retaining developers within the United States and ensuring that America continues to lead the world in cutting-edge technological innovation. Without supportive policies, the US risks losing its competitive advantage in blockchain development to more crypto-friendly jurisdictions.

Ensuring Financial Access and Inclusion

It's also vital to ensure that blockchain technology fulfills its promise of enhanced financial access – both for crypto-using companies requiring financial services and, more crucially, for underserved populations in need of basic banking services. For the underbanked and unbanked populations, approximately half of Fortune 500 executives acknowledge that cryptocurrency has significant potential to increase access to the financial system and enhance wealth creation opportunities for marginalized communities.

For companies actively using cryptocurrency, one Fortune 500 executive noted that traditional banks can do more to encourage innovation by finding additional ways to collaborate with blockchain companies rather than excluding them from banking services. This partnership approach could accelerate innovation while maintaining appropriate risk management.

Maintaining US Global Leadership

The United States needs to exert decisive leadership in the cryptocurrency and blockchain space. Fortune 500 executives demonstrate significant interest in American leadership: 79% express preference for working on blockchain initiatives with partners based in the US (up from 73% a year earlier), and 72% agree that having a USD-backed digital currency (versus alternatives like the digital Yen) keeps the US economy competitive globally and preserves the dollar's reserve currency status.

This research underscores that maintaining American leadership in cryptocurrency innovation is not merely a technological imperative but also an economic and geopolitical priority.

Conclusion

Cryptocurrency represents the future of money and financial infrastructure. This research report, our fourth comprehensive study since June 2023 and a year-over-year analysis of corporate blockchain adoption, is Coinbase's latest contribution to our integrated campaign to educate the public about the transformative role that crypto, blockchain, and other web3 technologies can play in updating the global financial system for the benefit of corporations and consumers alike. The evidence demonstrates that Fortune 500 companies, small businesses, and financial institutions are increasingly recognizing blockchain's potential to solve real-world problems, reduce costs, and expand financial access – provided that supportive regulatory frameworks emerge to nurture this innovation.

FAQ

Why are Fortune 500 companies moving toward blockchain and cryptocurrency?

Fortune 500 companies are adopting blockchain and cryptocurrency to improve operational efficiency, reduce transaction costs, enhance data security, and capture growth opportunities in the rapidly expanding digital asset market.

Which major Fortune 500 companies have entered the crypto space or moved onchain?

Walmart, Amazon, and ExxonMobil have entered the crypto field and adopted blockchain technology. Apple is also exploring blockchain applications for enterprise use.

What are the main application scenarios for large enterprises adopting blockchain technology?

Major enterprises leverage blockchain for supply chain transparency, smart contracts automation, identity verification, payment settlement, and asset management. These applications enhance operational efficiency, reduce intermediary costs, and improve transaction settlement speed while ensuring data immutability and security.

What are the main challenges and risks that enterprises face in moving onchain?

Main challenges include regulatory compliance, technical integration complexity, smart contract security risks, and scalability limitations. Enterprises must also address data privacy concerns, interoperability issues across different blockchains, and the need for specialized talent in blockchain development and management.

How will enterprise-level applications of cryptocurrency and blockchain change traditional finance and business models?

Enterprise blockchain adoption will reshape finance through clearer property rights definition, reduced intermediaries and trust costs, smart contract automation enabling code-as-law execution, and direct value transfer across networks, fundamentally transforming transaction settlement and business processes.