Nine companies betting big on blockchain and crypto

Cryptocurrencies and blockchains have been around for 15 years — and in the early days, they were regarded as a joke by financial institutions. After exchange-traded funds based on Bitcoin's spot price were approved in the US, no one's laughing now.

Companies and CEOs that were once deeply skeptical about digital assets are now jostling to get in on the action — by offering new investment products, accepting crypto as a payment method, or adding Bitcoin to their balance sheet. Data suggests venture capital funds invested $460 million into crypto startups in January, coinciding with the end of a brutal bear market.

Here, we're going to take a look at the firms that are betting big on blockchain and crypto — as well as how this could play as an investment strategy. 

1. BlackRock

With trillions of dollars in assets under management, BlackRock is one of the world's biggest investment companies. It has also played a starring role in the race to bring a Bitcoin ETF to market, adding a sheen of credibility to this notoriously volatile cryptocurrency.

An ETF tracking BTC's current value is significant — for many reasons. First, it allows investors to gain exposure to Bitcoin without having to own the asset directly. Shares in the fund can be snapped up with ease from an existing investment account. And for those who are nervous about keeping crypto safe, such products remove headaches surrounding custody.

Since BlackRock's iShares Bitcoin Trust launched on January 10, data from Bloomberg Intelligence suggests it's received inflows of over $3.2 billion. That makes it one of the five most popular ETFs in the year to date. 

The financial institution's CEO, Larry Fink, recently told CNBC that this product is "step one in the technological revolution in the financial markets." As well as predicting that assets like shares could soon be tokenized on the blockchain, Fink has dropped hints that BlackRock would like to launch ETFs for other cryptocurrencies like Ether.

Crypto enthusiasts firmly believe that the 10 or so Bitcoin ETFs on the market could drive prices substantially higher, as each fund will be racing to add BTC to its balance sheet — even as the supply of new coins is slashed in half come April.

2. Fidelity

BlackRock isn't the only financial services giant getting involved. Fidelity Investments has unveiled its own Bitcoin ETF — and also offers other products for American investors.

The company made a splash in 2022 when it announced that customers with 401(k) retirement plans would be able to allocate part of their savings to BTC. It's fair to say this sparked quite a backlash. Democratic Senator Elizabeth Warren, a vocal critic of cryptocurrencies, claimed the move could put the financial security of millions of people at risk.

Undaunted, Fidelity's director of global macro Jurrien Timmer has described BTC as "exponential gold" that can serve as "a store of value and a hedge against monetary debasement." With major economies suffering from red-hot inflation, and Bitcoin's total supply capped at 21 million, it's a compelling argument.

3. PayPal

Back in 2018, PayPal's CEO Dan Schulman had made it clear he was deeply skeptical about Bitcoin — telling TheStreet: "The volatility of the cryptocurrency makes it actually unsuitable to be a real currency that retailers can accept."

Fast forward two years, and the entrepreneur had performed a complete U-turn. PayPal announced that customers in the UK and US would be able to buy and hold Bitcoin, Ether, Bitcoin Cash and Litecoin — and use these digital assets to make purchases at millions of retailers worldwide. At the time, it was regarded as a watershed moment for adoption.

Given the global demand for dollars, stablecoins are a crypto innovation that have sparked great interest in the fiat world. Here, tokens are backed on a 1:1 basis with US dollars held in reserve. Tether is the undisputed leader with a market cap of $96 billion at the time of writing, but there have been repeated questions about its financial standing.

PayPal has also sought to make its presence felt in this sector by launching PayPal USD, which is based on the Ethereum blockchain. Customers can send PYUSD to their friends and family without fees, which could be beneficial for foreign workers sending remittances.

One thing is clear: PayPal is seeking to future-proof its business model, and integrating support for digital assets in case adoption continues to grow. Interestingly, it's not the only big brand in the payments space that's embraced this strategy.

4. Mastercard

When Mastercard announced that it was starting to bring crypto onto its network in 2021, the credit card processing giant admitted it would be controversial. Nonetheless, its position was clear: "Digital assets are becoming a more important part of the payments world." 

The business had noted an uptick in the number of consumers using its plastic to buy crypto — and converting coins into traditional currencies when they wanted to make purchases. Mastercard said it wants to give shoppers and merchants alike the choice to use digital assets if they want to.

It now allows crypto to be used for everyday transactions at over 100 million locations worldwide, in a variety of ways. Some cards allow digital assets to be liquidated at the point of purchase, while others unlock credit based on the user's holdings. Other products enable shoppers to earn rewards in crypto — a modern-day alternative to cashback.

Mastercard is also positioning itself to accept central bank digital currencies — electronic versions of dollars, pounds and euros — which are being explored by 130 countries.

5. Visa

Also embracing blockchains and cryptocurrencies is Mastercard's arch rival Visa. Partnerships with the likes of Transak mean investors can withdraw coins from their mobile wallet and exchange it to fiat using their debit card. The global brand has also been experimenting with blockchain infrastructure, and hit headlines in 2020 by using the USDC stablecoin to settle transactions on Ethereum. 

6. Gucci

We've been focusing on fintech firms and asset managers so far, but luxury brands and retailers are also betting big on crypto. Gucci now accepts cryptocurrencies including Bitcoin and Ether — as well as memecoins like Dogecoin and Shiba Inu — at stores across the US.

7. Moët Hennessy Louis Vuitton

LVMH is part of the "GRANOLAS" group of stocks — a term coined by Goldman Sachs to describe the 11 biggest publicly traded in Europe. It's been billed as a rival to the tech-focused FAANG stocks that dominate Wall Street. 

Known for owning high-end brands including Dior, Givenchy and Veuve Clicquot, LVMH was dabbling in blockchain technology long before it was cool. It's even teamed up with Prada and Cartier to launch its own network. The use case? Verifying the authenticity of luxury items, as well the provenance of the raw materials used to create them. 

Tiffany & Co — another brand in the LVMH stable — has also entered into some eye-catching collaborations. In 2022, it launched "NFTiffs," which allowed the owners of CryptoPunk NFTs to have their digital art transformed into a gem-studded pendant. The 250 digital passes on offer sold out in just 20 minutes.

8. Nike

Staying with the theme of non-fungible tokens, and Nike has shown how retailers can unlock lucrative new revenue streams through crypto collectibles.

Back in December 2021, the sportswear giant snapped up RTFKT and began minting rare virtual sneakers for fans to collect. As well as making money on the initial sale, Nike also receives a share whenever the NFT is sold again on secondary markets. In the two years since, it's generated $1.4 billion in trading volumes and $170 million in profit.

9. MicroStrategy

Some firms are taking an entirely different approach — and trying to amass as much Bitcoin as possible.

One of them is MicroStrategy, a publicly listed business intelligence firm. Back in August 2020, the company revealed that it was spending $250 million on 21,454 BTC — with a view that the cryptocurrency could serve as a hedge against inflation.

Since then, the company's Bitcoin holdings have continued to grow. Fast forward to February 2024, and it's now amassed 190,000 BTC. That has cost a staggering $5.93 billion, with an average price per coin of $31,224, and has largely been funded by taking out debt.

It is a risky strategy, but the company's co-founder and executive chairman Michael Saylor has been unflinching even in bear markets, when MicroStrategy was sitting on unrealized losses of over $1 billion. After BTC almost trebled in value, surging from $16,000 in January 2023 to $45,000 in February 2024, MSTR is back in the green — and up by more than $2.5 billion.

For Wall Street investors too queasy to dabble in crypto themselves, MicroStrategy's stock has become something of a proxy for Bitcoin — rising and falling in line with the cryptocurrency. Over the same 13-month period, MSTR has risen by 316%.

A common motto among BTC enthusiasts is this: "we're so early." And when it comes to the involvement of big business in the crypto space, that might be true.