Institutional interest in cryptocurrency is on the rise, from trading and prime brokerage to asset management and DeFi. This Market Map looks at the companies providing trusted crypto access to institutional clients.
The start of 2022 looked promising for institutional crypto. More than 80% of institutional investors said crypto would become mainstream within 10 years, according to a Bitstamp survey.
But that was before the crypto crashes in May and June. The downturn wiped out around half of the total cryptocurrency market cap.
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Despite this battering, the buzz surrounding institutional crypto is back on the rise and activity among traditional financial institutions is picking up:
- BlackRock partnered with Coinbase to give its institutional clients direct access to crypto trading through Coinbase Prime.
- Charles Schwab, Citadel Securities, Fidelity Digital Assets, and others launched a crypto exchange for institutional and retail investors called EDX Markets.
- Prominent investment managers like Bank of America, BlackRock, State Street, and Bernstein have cited increased interest in crypto from institutional clients.
Crypto providers are waiting in the wings to serve, partner with, and compete with these traditional investment firms. But a flood of institutional capital won’t move into crypto all at once. Security, compliance, liquidity, and volatility are still significant concerns holding back investors.
Using CB Insights data, we identified 105 crypto companies making strides to solve these issues by addressing 6 technology priorities for institutional investors and traders, from trading and prime brokerage to asset management and decentralized finance (DeFi).
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