Fortune 100 companies have increased their involvement in cryptocurrency, blockchain, and web3 initiatives by 39% in the first quarter of 2024 compared to the same period last year. This marks a record level of corporate engagement in these advanced technologies. Research from Coinbase and The Block indicates that over half of the Fortune 500 firms are exploring blockchain solutions, including consumer-focused payment apps.

The growing enterprise involvement highlights the need for comprehensive norms and standards to retain cryptocurrency developers and talent in the U.S., ensuring that cryptocurrencies fulfill their potential to enhance access and enable the U.S. to lead globally. Finance professionals are integrating blockchain technology and cryptocurrency into their companies, fostering development and usability opportunities.

Significant progress has been made with the successful implementation of spot bitcoin exchange-traded funds (ETFs), which now have over $63 billion in total net assets. The U.S. Securities and Exchange Commission (SEC) has also approved spot ether ETFs for listing and trading, pending S-1 approval, expanding investment opportunities through reputable financial products.

Additionally, the market for on-chain government securities has grown rapidly, driven by high interest rates and demand for safe, well-paying instruments like T-bills. Tokenized U.S. Treasury products have seen a market capitalization surge of over 1000% since January 2023, now standing at $1.29 billion. BlackRock, for example, has created a tokenized U.S. Treasury fund that surpasses Franklin Templeton's similar offering in investor numbers. Hedge funds and cryptocurrency market makers now use these products to trade coins and tokens.

Moreover, global payment giants such as PayPal and Stripe are enhancing stablecoin usage. Stripe's partnership with Circle enables merchants to accept USDC payments via various blockchains and instantly convert them to fiat currency. PayPal aims to boost business in the $860 billion remittance market by eliminating transaction fees for cross-border transfers using stablecoins.

The report also highlights small businesses' contributions to the cryptocurrency market. About 68% of interviewed small business owners see potential in cryptocurrencies to address major financial challenges like transaction costs and time. However, talent sourcing remains a significant issue, with the U.S. seeing a decline in its share of crypto developers, now only 26%. This talent shortage is a greater concern for Fortune 500 management than regulatory issues.

Regarding global competitiveness, 79% of Fortune 500 executives prefer partnering with U.S. entities, and 72% believe a USD-backed digital currency is crucial for maintaining the U.S.'s competitive edge.

This latest report from Coinbase aims to clarify the role of crypto, blockchains, and Web3 in modernizing the global financial system for the benefit of businesses and consumers. As these technologies evolve, developing an appropriate regulatory framework is essential to foster their growth while ensuring access and equity.