Good morning. Is the segment of crypto-friendly CFOs growing? That appears to be the case, as pursuing blockchain initiatives is becoming increasingly common.
Fortune’s Catherine McGrath reported last week that about 60% of Fortune 500 executives say their companies are “working on blockchain initiatives,” according to a new survey published by crypto exchange Coinbase in partnership with GLG Research. This is a 4% increase from last year.
The report also highlighted that 81% of crypto-aware, small- and medium-sized businesses are interested in using stablecoins to address their biggest financial pain points. That belief is catching on at large companies, with more than three times as many Fortune 500 executives now exploring stablecoins compared to last year, according to Coinbase.
Fortune’s Leo Schwartz and Ben Weiss exclusively reported that Meta is in discussions with crypto firms to introduce stablecoins as a means to manage payouts, and has also hired a VP of product with crypto experience to help shepherd the discussions. Amazon and Walmart are also looking into issuing their own stablecoins, the Wall Street Journal reports.
Shifting political dynamics have sparked renewed interest in blockchain among mainstream U.S. corporations. The Trump administration has advocated for a clear regulatory framework for crypto in support of the industry.
The crypto industry also is currently experiencing a surge in IPO activity. Circle, a leading issuer of the USDC stablecoin pegged to the U.S. dollar, went public this month with a valuation of $8 billion. Several other crypto companies also have filed for IPOs or are reportedly exploring the possibility.
Are legacy financial institutions at large prepared for crypto? Jenny Johnson, CEO of Franklin Templeton, doesn’t think so. Johnson helms a nearly 80-year-old, publicly traded financial institution. She writes in a Fortune opinion piece that financial institutions have attempted to integrate digital asset technology for more than 10 years “with little to show for their efforts,” as the total value of blockchain-based finance comprises less than 1% of the $300 trillion global system.
“We believe that the portfolios of the future will increasingly move away from today’s account-based system and rely instead on digital wallets that can hold a limitless number of tokenized assets in a single place—all of which can be transferred instantly, as well as lent out or staked for additional yield,” Johnson writes. She adds, “The advantages of blockchain are so compelling that we don’t foresee the shift to digital-asset technology being slow or incremental. Indeed, we expect our industry will evolve more in the next five years than in the last 50.”
Sheryl Estrada
sheryl.estrada@fortune.com
