Venture Capitals, technology firms and financial institutions are actively investing in blockchain technology startups building infrastructure for the cryptocurrency industry, though they are still wary of bitcoin and altcoins due to their volatile nature, according to a Reuters report on April 18, 2019.
$850 Million Poured Indirectly into the Cryptospace
Per sources close to the matter, in 2019 alone, venture capital firms have invested up to $850 million in startups developing infrastructure for crypto and blockchain technology.
Even large firms such as London Stock Exchange Group and Microsoft Corp pumped funds into promising crypto and blockchain-related projects, a strong indication that these large firms believe in the potentials of the new technology.
Reportedly, other large corporations are still standing on the fence when it comes to integrating cryptocurrencies into their processes. This is because of the severe price swings, frequent hacks, and heists, as well as the regulatory uncertainties still surrounding the crypto industry.
Blockchain technology, on the other hand, is gaining significant traction across the globe, especially in the trade finance and supply chain sectors, some observers have argued that the nascent technology still has a long way to go before gaining broader adoption.
Commenting on the matter, Richard Hay, the British head of Fintech at the law firm Linklaters, reiterated that blockchain technology could potentially allow organizations to cut costs and transform their operations in the long run.
In his words:
“There are two dynamics at play. We can get something up and running and achieve significant cost savings, while also looking at the possibility of deploying the technology in more transformative ways.”
Tokenization Attracting Investors
According to Reuters,