JPM - The Institutions Are Already In Crypto: Why Web3 Natives Are In The Driver's Seat | Benzinga
By Jupiter Zheng
For many years, observers have wondered when the behemoths of traditional finance, like BlackRock (NYSE: BLK) and JPMorgan (NYSE: JPM), would finally enter the blockchain arena in a big way. The expectation that these bellwethers of global finance would, in a sense, "see the light” by acknowledging the technological advantages of web3 was perhaps a little naive. But it was not unfounded: traditional investors have been making incremental shifts in this direction for some time, whether by investing in spot cryptocurrency, launching custody services, settling digital bonds on public ledgers, or creating their own product offerings for retail and institutional clients.
The argument that blockchain and cryptocurrencies must be embraced by traditional powerhouses in order to flourish is a sound one. But the heavy focus on legacy financial institutions overlooks something important: the rise of crypto-native institutions. Rather than having to be convinced of the merits of distributed ledgers, these forward-looking innovators and investors grew up with decentralized tech at the heart of their operations and vision. And make no mistake, they will be the ones to drive the industry – and maybe finance as a whole – forward.
We Were Always Here: The Vitality of Crypto-Native Institutions
As the crypto industry has matured, a new breed of institution has emerged. These are not your traditional Wall Street firms belatedly flirting with blockchain tech; they are entities that fundamentally understand and appreciate the ethos of decentralization. They get the tech, and the reasons for its development, at an instinctive level. They have been an integral part of Web3 since the technology’s inception, and have evolved together with it. From the beginning, these institutions have been key drivers in the industry’s advancement through major milestones, from the rise ...