At Blockdaemon, we’re proud to support some of the world’s largest financial institutions, acting as their gateway to web3. Our platform provides secure tools and infrastructure, enabling these traditional organizations to seamlessly access blockchain technology. We are pleased to call some of the largest financial institutions like BNY Mellon and Citibank customers.
Currently, Blockdaemon secures $110 billion in digital assets for over 400 institutional clients, including 90% of the top 20 global crypto custodians and 40% of the top 10 largest U.S. banks. Since the U.S. election results, we have seen increased demand from financial institutions to access the blockchain, and we are pleased to be their trusted partner. This administration has promised to be supportive of blockchain technology and we are optimistic that under his administration we have a clear regulatory framework for crypto.
All of this matters because the future of mass adoption of crypto hinges on onboarding the largest institutional players. Crypto represents a modern financial system that benefits everyone, but the key to scaling this technology is through established financial organizations transitioning into web3. Crypto is the most cost efficient and secure way to service payments and money-movements around the world, and having regulated on and off-ramps provides communities with the ability to ensure KYC is carefully applied and OFAC rules complied with, while also giving the individual true ownership of their money.
We believe that bringing these institutions into web3 will create a ripple effect throughout the economy. An open, transparent financial system benefits all, giving every individual a voice and vote, with blockchain serving as a reference point for truth. The U.S. can be the stablecoin back-bone for a global money network that is inclusive and functions at near zero cost. It is the path to maintain the dollar as a global reserve currency, and will ultimately drive transaction cost and associated 3rd party fees for financial access close to zero; like the pixelation of music did to cost of music distribution. That doesn't mean that banks won't have an enormously important part to play in settling and providing financing options and services, it just means that revenue models based on spatial-cost-models and simply custodying funds will go to near zero.
Crypto’s potential is vast. It can create a more efficient society and improve wealth access by offering transparency and freeing up capital that is currently caught up in an intransparent and monolithic system. Blockchain technology can be used to monitor bad actors within the financial ecosystem. Stablecoins can be used to quickly and inexpensively send money across the world.
All of these tactics represent great promise for crypto and blockchain technology. And, like any new technology, we don’t even know how it is going to be fully utilized. If done right, crypto will play its part in bringing people together and allow everyone to be counted. It is a hugely humane and optimistic endeavor.
Crypto is a transformative technology with near limitless use cases that can serve humanity by providing cheap and secure access to payment and financial services around the world. We can’t wait to see what this new future holds.
Konstantin Richter is the CEO of Blockdaemon, the complete institutional solution for seamless, secure, and efficient web3 services.
