The State of Crypto

The Fortune
500 Moving
OnchainQ2 2024/

Jun 12

The State of Crypto:
The Fortune 500
Moving Onchain

1 The Block
2 Web3 Adoption Survey
3 Dune Compared to January 2023, asof May 31, 2024.
4 The Block, artemis.xyz
5 Small Business Survey
6 Electric Capital’s Developer Report:
January - December 2023

America’s top public companies are busier onchain than ever. The number ofcryptocurrency, blockchain or web3 initiatives announced by Fortune 100
companies has increased 39% year-over-year and hit a record high in Q1 2024,
according to research conducted for Coinbase by The Block.1 A survey of
Fortune 500 executives finds that 56% say their companies are working on
onchain projects, including consumer-facing payments applications. The
increased activity increases the urgency for clear rules for crypto that help
keep crypto developers and other talent in the US, fulfill its promise of better
access, and enable US leadership on crypto globally.

Many of the most trusted names and products in finance are embracing
blockchain technology and crypto, driving innovation and providing on-ramps
for widespread adoption

1 June 1, 2023 through May 31, 2024
vs June 1, 2022 through May 31, 2023
2 As of May 31, 2024
3 As of May 31, 2024
4 Financial Times, May 14, 2024
5 Relevance of on-chain asset
tokenization in ‘crypto winter,’
BCG x ADDX

Spot bitcoin ETFs happened, of course – and to significant pent-up
demand. Today, total spot bitcoin ETF assets under management is morethan $63 billion.2 On May 23, the SEC approved exchange applications to list
and trade spot ether ETFs (pending S-1 approval), further scaling access tospot crypto in familiar, trusted products and spurring adoption
Beyond ETFs – onchain government securities are driving new interest in
real-world asset tokenization. Recent high interest rates have boosted
demand for safe, high-yielding T-bills onchain, sending the value of
tokenized US Treasury products over 1,000% since the start of 2023, to $1.29
billion.3 BlackRock’s tokenized US Treasury fund BUIDL, at $382 million,
recently passed Franklin Templeton’s $368 million fund to become thelargest; crypto hedge funds and market makers are using BUIDL ascollateral for trading coins and tokens.4 By 2030, the tokenized asset market
is expected to hit $16 trillion – the size of the EU’s GDP today.5

State of Crypto: The Fortune 500 Moving Onchain

1

Along with Coinbase, global payments giants PayPal and Stripe also are making
stablecoins even easier to use. Via Circle, merchants on Stripe can now accept
payment in USDC via Ethereum, Solana, and Polygon – with payments
automatically converting into fiat currency. PayPal is supporting cross-bordertransfers for stablecoin users across about 160 countries – with no transaction
fees, versus 4.45% to 6.39% in average charges in the $860 billion global
remittance market.6 7 The annual settlement volume of stablecoins hit $10
trillion in 2023, more than 10x the amount of remittances worldwide.
The progress isn’t just top-down but also ground-up: small business, themost trusted institution in the US, is also venturing into crypto.9 About
seven in 10 (68%) believe crypto can help address at least one of theirfinancial pain points, the biggest of which are transaction fees andprocessing times.

At Coinbase, we applaud tradfi’s progress in updating the system, with a few
callouts from the data

6 The World Bank
7 The World Bank
8 Annual stablecoin settlement volume
was calculated based on onchain datacollected by The Block and artemis.xyz.
9 Gallup
10 Electric Capital’s Developer Report:
January - December 2023

It’s imperative that the US cultivate increasingly needed talent rather
than continuing to lose it overseas. The US continues to lose developer
share, down 14 points in the past five years; only 26% of crypto developers
are US-based today.10 Among Fortune 500 (F500) executives, concern about
available, trusted talent is now a top blocker to adoption, more thanconcern about regulation. Among small businesses, half say they’re likely toseek out candidates familiar with crypto the next time they fill a finance,
legal or IT/tech role. Clear rules for crypto are key to keeping developers in
the US – and to the US continuing to lead the world in cutting-edge
technological innovation
It’s also vital to ensure that the technology fulfills its promise of better
access – both for crypto-using companies needing financial services andeven more crucially, for underserved people in need of financial services.
For the underbanked and unbanked, about half (48%) of F500 executives saythat crypto has the potential to increase access to the financial system andability to create wealth. For companies that use crypto, one F500 executive
noted that banks can do more to encourage innovation by finding more ways
to work with them
The US needs to exert leadership in this space. F500 executives show
significant interest here: 79% would want to work on initiatives with apartner in the US (up from 73% a year ago), and 72% agree that having a
USD-backed digital currency (versus the Yen) keeps the US economy
competitive globally.

Crypto is the future of money. This research report, our fourth since June 2023
and a year-over-year look at corporate adoption, is Coinbase’s latest release in
our integrated campaign to educate the public about the role crypto,
blockchain and other web3 technologies can play in updating the global
financial system for the benefit of corporations and consumers alike.
State of Crypto: The Fortune 500 Moving Onchain2

Fortune 100 Companies: Initiatives by Industry
20
18

End of Q2
projection

16
37%
14

35%

25%

40%

12
31%
10

18%

8

90%
4
50%
2

9%

73%

62%

23%

10%

9%

33%

13%

Q1’20

Q2’20

Q3’20

Q4’20

15%
Q1’21

33%
33%

67%

27%

42%

17%
9%

8%

17%

Q2’21

Q3’21

Q4’21

50%

27%

6%
19%

50%
8%
8%

13%
Q1’22

8%

18%
18%

29%

43%

17%
17%
8%

8%

14%

8%

42%
36%
60%

12%
12%

18%

11%

9%

5%

8%

9%

8%

14%

8%

6%

9%

5%

Q2’22

Q3’22

Q4’22

Q1’23

Q2’23

Q3’23

Q4’23

Q1’24

Oil and Gas

Telecom

ApparelAerospace and Defense

EnergyAuto and Transportation

Healthcare

Entertainment and Media

Food and Beverage

RetailFinancial Services

Technology

America’s top  
public companies

11

6%
8%

33%

35%

38%

6

27%

31%

23%

82%

0

17%

31%

June 1, 2023 through May 31, 2024 
vs June 1, 2022 through May 31, 2023

12 The Block
13 The Block pulled monthly datafrom the SEC’s EDGAR databaseand used it to analyze trends inthe quantity of such mentions
over time.

Q2’24** Q2 2024 represents
partial data throughMay 31, 2024

The country’s top public companies are busier onchain than ever.
Among the Fortune 100 (F100), a record number of onchain initiatives were
underway in Q1 2024
The volume of onchain initiatives announced by the F100 has increased
39% year-over-year 11
A bigger share of initiatives announced in 2024 are at the advanced stage
than in any previous 12-month period: 59% YTD, compared to 52% in 2023
and 43% in 2022.1
Mentions of bitcoin and stablecoins in SEC filings hit new highs in Q1.13

Crypto is helping traditional finance update the century-old financial system.
While the past three years were years of experimentation onchain, tech
and financial services have found the best product-market fit. The two
sectors together had eight in 10 of the F100’s onchain initiatives in Q1 –intensifying a trend from 2023, when they accounted for nearly six in 10.
State of Crypto: The Fortune 500 Moving Onchain3

In finance: Bitcoin ETFs drove a majority of initiatives, with Bank ofAmerica, Wells Fargo and Morgan Stanley starting to roll out theseproducts to their brokerage and wealth management clients. Goldman
Sachs, JPMorgan and Citi have become authorized participants for bitcoin
ETFs. Citi and Goldman both pursued tokenization tests
In tech: Google announced and rolled out capabilities around making
blockchain information searchable directly on its search engine. Google
also announced infrastructure support by acting as a validator for a few
new blockchains. Microsoft participated in tests of a new blockchain
network (Canton Network) meant for asset tokenization. IBM partneredwith Casper Labs on a blockchain-based way to help companies audit thedata used to train AI models.

Current and considered use cases among top US companies
USE CASE

F100

F500

Payments/settlement#1 use case for financial services brands#1 use case, up 25 pts YoY from 48%–73%

Blockchain infrastructure#1 use case for tech brands#2 use case

Trading products (ETFs)#2 use case for financial services brands

Increased from 14% to 25%

Smart contracts#3 use case for tech brands#3 use case

Tokenization#3 use case for financial services brands#4 use caseInterest in using onchain technology for consumer-facing transactions, notjust back-end systems, extends beyond just F500 financial services brands toretail, healthcare and consumer packaged goods, specifically including:
Exploring crypto as a form of payment for remote or global region
Implementing play-to-earn mechanics to enhance video game
experience
Letting healthcare patients and customers use digital wallets to pay for
products and service
Accepting healthcare donations in crypt
Blockchain- and NFT-based restaurant loyalty programs

State of Crypto: The Fortune 500 Moving Onchain4Year-over-year shifts in F500 attitudes point to growing recognition of thetechnology’s importance
F500 executives report an average 2024 budget of $9.5 million for onchain
projects. Most F500 executives say their companies will maintain or
increase their budget for crypto and onchain projects over the next two
years.
Top drivers for these projects include the technology being an important
one for the future and a fit with their brand, enabling efficiencies for theircompany, and enabling new revenue streams
Among F500 companies not currently planning any initiatives, some of thebiggest barriers cited include a lack of trusted, skilled talent – which,notably, nearly doubled in share year-over-year – along with a lack ofunderstanding and uncertainty about how to get started with thetechnology. Concern about regulation eventually affecting use cases
faded significantly.

F500 Drivers and Barriers to Engaging Onchain
62%
53%

59%

2023

2024

55%

49%

46%

29%

35%

32%
25%

40%
30%

34%
27%

38%
30%

23%
11%

Believe thiswill be an
importanttechnology inthe futureThis
technology
enables
efficiencies forour company

This technology
enables newrevenue streams
for our company

Harnessing
the latest
technology
is a fit withour brandState of Crypto: The Fortune 500 Moving Onchain

Lack oftrustedtalent withthe right
skillsLack ofunderstanding of
the technology

Uncertainty on
how to getstartedConcerns about
regulation
eventuallyaffecting use
cases

Lack offunding  or otherresources

5

Stablecoins andother tokens

Most top companies have interest in the potential benefits of stablecoins andother types of tokens, especially for faster, cheaper transactions
Seven in 10 F500 executives are interested in learning more about astablecoin use case, mainly payments for instant processing time andlower fee
86% recognize potential benefits of asset tokenization for their company
35% say their companies are currently planning projects on tokenization(including stablecoins).

Top 5 potential benefits and use cases of interest to F500 executives* Among the 70% of F500

executives who are interested in atleast one of nine cited use cases.

** Among the 86% of F500

executives who recognize
potential benefits to tokenization.

StablecoinS*

Tokenization**

1 Instant settlement/low processing time
2 Taking payment in stablecoin to lower fees
3 Transferring money within the company
4 Treasury management / for easy conversion
5 Instant international transfers

Real-time settlement and reduced transaction times
Cost savings and operational efficiencies
Improved transparency and traceability of assets
Streamlined compliance and regulatory processes
Tokenization of loyalty programs to drive engagement

Stablecoin
14

Daily onchain stablecoin volumes
were calculated based on onchain
data collected by The Block andArtemis.
emittance data was collected fromthe IMF and World Bank

15 R

16

The Block pulled monthly data fromthe SEC’s EDGAR database and used
it to analyze trends in the quantity ofsuch mentions over time.

17

The Block collected data on the T-billholdings backing USDC and USDTfrom the reserve reports publishedby each stablecoin’s issuer, Circle andTether, respectively. Direct reserve
holdings of US Treasury bills werecounted along with exposure throughrepurchase agreements and indirect
exposure through money market
funds. The aggregate holdings
backing both stablecoins werecompared to the holdings of major
foreign holders of US Treasury bills,
as reported by the US Department of
the Treasury.

Daily stablecoin transfer volume hit an all-time high of $150 billion in Q1
2024, having been on an upswing since Q3 2023.14
The annual settlement volume of stablecoins hit $10 trillion in 2023, morethan 10x the amount of remittances worldwide 15
Mentions of stablecoins in SEC filings have trended upward with a notable
increase since the start of 2024 16
By Q2 2024, issuers of USDC and USDT held about as much in US T-bills (asreserves for the stablecoin they issue) as Norway, Saudi Arabia, and Korea 17
Notably, this momentum is building despite a lack of clear rules forstablecoins – although many industry analysts speculate that thedominance of offshore-based Tether’s USDT is at least partly due to thisregulatory vacuum and to recent events affecting USDC. While concern
about regulation has faded as an obstacle to crypto/onchain adoption
overall, more than half of F500 executives cite it as a deterrent to theiradoption of stablecoins.
State of Crypto: The Fortune 500 Moving Onchain

6

USDC + USDT T-Bill Holdings Compared to Major Foreign Holdersof U.S. Treasuries (USD Billions)

1,400

$

1,200

1,188

$

$

1,000

$

6

$7 7

8

8

$72

6

$ 00

399

$

4

$ 00

3 9

$ 5

318

$

317

$

3 3

$ 0

83

$2

63

$2

9

$25

41

$2

$227

8

$20

$202

149

$

$200

149

$

136

$

116

$

9

$ 0

89

$

MexicoGermanySouth

PayPal's PYUSD

Korea,

Saudi Arabia

NorwaySDC + USDTUHong Kong

Singaporez

Bra ilIndia

TaiwanSwitzerland

FranceCayman Islands

Belgium

Ireland

CanadaLuxembourg

United Kingdom

China, Mainland

$0
Japan

BILLI

ONS

$ 00

Case study 1

In August 2023, payments giant PayPal launched its PayPal USD (PYUSD) stablecoin on the Ethereum network –then made it available to its 60 million users on Venmo. Developed in partnership with Paxos and fully backed by
US dollar deposits and short-term US Treasuries, PYUSD has reached $400 million in circulation in 10 months,
and hit an all-time high in daily trading volume in April: $60 million. The supply of PYUSD in circulation has
increased by over 600% since August. A recent subpoena from the Securities and Exchange Commission tied to
PYUSD was complied with and the stablecoin continues to operate normally.

“Stablecoins are the killer application for blockchains right now and they aregoing to be fundamentally important for the status of the dollar as a global
reserve currency.”

Jose Fernandez da Ponte, SVP, General Manager Blockchain, Crypto and Digital Currencies  
at Paypal

State of Crypto: The Fortune 500 Moving Onchain

7

JPMorgan’s JPMCoin

Case study 2

Leading global financial institution JPMorgan has invested in the digital asset space since 2015, and developed
the Quorum blockchain in 2016. It went on to form the official digital asset business unit of Onyx in 2020. The
centerpiece of Onyx's offerings is JPMCoin, a distributed ledger-based payment system used for intrabanktransactions. 

Although Onyx operates on a private ledger, making it difficult to verify metrics, JPMorgan executives haveshared impressive figures highlighting the growth and adoption of JPMCoin – including that it now handles $1
billion worth of transactions daily and expects that number to rise to $10 billion in the next year or two.  

Other moves to offer a programmable payments feature and extend JPMCoin settlement capabilities to a thirdparty platform, together with public comments from Onyx executives, suggest that JPMorgan is looking tocreate network effects through JPMCoin that will make Onyx a top tokenization platform.

Non-stablecoin tokenizatio

18”Relevance of on-chain asset
tokenization in ‘crypto winter,” by Sumit
Kumar, Rajaram Suresh, Darius Liu,
Bernhard Kronfellner and Aaditya Kaul

19

Dune

20

Hong Kong Monetary Authority: An
Assessment on the benefits of Bond
Tokenisation Research Memorandum 04/2023, 28
November 2023

21

Dune

22

Dune

By 2030, the tokenized asset market is expected to hit $16 trillion – thesize of the EU’s GDP today.18
While stablecoins are the main driver of growth in tokenization, thetokenizing of real-world assets, whose value exists outside of blockchains,is also on the rise. Total value of tokenized, non-stablecoin assets hasreached roughly $3 billion, more than doubling since the start of 2023.  19
And this figure only captures publicly trackable assets – estimates by theHong Kong Monetary Authority find another $3.9 billion in bonds havebeen tokenized 20
Government securities are driving real-world asset tokenization, and are
the only asset class where prominent US brands – led by BlackRock andFranklin Templeton – are tokenizing. Recent high interest rates haveboosted demand for safe, high-yielding T-bills onchain, sending the  value of tokenized US Treasury products over 1,000% from January  
2023, to $1.29 billion as of May 31, 2024. Yield on these securities is at  
a 30-year high
Before tokenized T-bills, interest focused on commodities, and while theirtokenized value has been overshadowed by surging government
securities, more users onchain have held commodity-based tokenizedassets than any other tokenized asset type (beyond stablecoins)
Gold is by far the #1 commodity, accounting for nearly the entire $1 billion
in tokenized commodities 21
The overall value of tokenized loans on public blockchains grew from nearzero in October 2020 to over $400 million by April 2024. Loan types havediversified to include trade financing, revenue-based financing, and realestate financing, among other categories, suggesting that the tokenizedlending space has expanded into financing more types of borrowers anduse cases in recent years. 22
State of Crypto: The Fortune 500 Moving Onchain8

Tokenized Asset Market Cap by Asset Class (ex. Stablecoins)$3

BILLIONS$2$1

Commodities

Govt Securities

Private Debt

Real Estate

Private Equities

Private Funds

Equities

Corporate Bonds

Franklin Templeton’s FOBXX

Apr 24

JAN 24

Oct 23

Jul 23

Apr 23

JAN 23

Oct 22

Jul 22

Apr 22

JAN 22

Oct 21

Jul 21

Apr 21

JAN 21

Oct 20Jul 20

Apr 20Jan 20$0Case study 1

In 2019 Franklin Templeton, one of the world’s largest asset managers, launched its US Treasury money market
fund FOBXX, giving investors access to government money markets through a trusted channel. By tokenizing
the fund, Franklin expanded investor access to onchain offerings and enabled the issuance and trading ofownership on a public blockchain. The fund's BENJI token was first deployed on the Stellar blockchain, then
expanded to the Polygon network. As of mid-May, FOBXX had $360 million in assets under management. 

The firm also began operating as a node validator on the Provenance and Stellar blockchain networks in 2019,and has since expanded these operations to support major blockchain networks such as Ethereum, Polkadot,
Cardano, and Solana – playing a key role in the building of the broader blockchain ecosystem.

23 Tokenization: A
Paradigm Shift for
Asset Managers |Franklin Templeton“The market infrastructure on which we have been issuing, trading, andwrapping assets into portfolios is 50 years old... What we are starting to see
with blockchain technologies is that there are ways to improve that
tremendously. There are ways to cut processing times, get more real-time
information, and enable 24/7/365 trading because we live in a global world
where our businesses operate around the clock.”

Sandy Kaull, Franklin Templeton’s head of digital assets23

State of Crypto: The Fortune 500 Moving Onchain9BlackRock's BUIDL Fund

Case study 2BlackRock, the global leader in asset management, made a splash with the launch of its first tokenized fund,the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), on the Ethereum network on March 20, 2024.
Together with prominent digital asset securities firm Securitize, BlackRock's BUIDL fund gives qualified
investors the opportunity to earn US Treasury yields. The fund aims for a stable value of $1 per token anddeposits daily accrued dividends directly into investors' wallets as new tokens each month.

Early participants in BUIDL’s ecosystem include notable names in crypto such as Anchorage Digital Bank NA,
BitGo, Coinbase, and Fireblocks. BlackRock is the Fund’s investment manager and Bank of New York Mellon isadministrator and custodian of the assets. PricewaterhouseCoopers is serving as auditor through EOY 2024.

BUIDL has seen huge growth since March, overtaking Franklin Templeton's FOBXX in assets under management,
capturing nearly 30% of the $1.3 billion tokenized US Treasury market.

“I believe this technology is going to be very important. I believe the next
generation for markets, the next generation of securities, will be thetokenization of securities. If we could have a distributed ledger that we know
every beneficial owner, every beneficial seller, we all have our code of who'sbuying, who's selling, instantaneous settlement, it changes the wholeecosystem.”

Larry Fink, BlackRock Chairman and CEO

Market Cap of Tokenized Government Securities by Issuer$1,400Swarm
Arca Labs$1,200Archblock$1,000

Maple Finance
OpenEden

BILLIONS$800

Backed FinanceHashnote$600

Mountain Protocol
Matrixdock$400

Superstate
Ondo Finance$200Blackrock (Securitize)$0Franklin Templeton
JAN 2023

APR 2023

JUL 2023

State of Crypto: The Fortune 500 Moving Onchain

OCT 2023

JAN 2024

APR 2024

10

Small Business

Small business, the most trusted institution in the US, is also venturing into
crypto and blockchain technology
Among small businesses that have some awareness of crypto, 53% arelikely to seek out job applicants who have knowledge of it the next timethey fill a finance, legal or IT/tech role – a share that raises the prospectthat a scarcity of skilled talent could hold back small business growthOver half think adopting stablecoins would help open up new business
opportunities.

They’re drawn to crypto because it’s cheaper and fasterTransaction fees and processing times are the biggest financial pain
points for small businesses
About seven in 10 (68%) believe crypto can help address at least one of
their financial pain points
Three quarters (76%) are interested in any of the benefits of crypto.

Blockchain Use Cases
People’ medical records exist in many formats – think ofthose handwritten or typed files on racks in a doctor’s office.
Acoer uses blockchain technology to help public healthorganizations collect, organize and analyze vast amounts ofhealthcare data to get a more complete picture of publichealth, leading to better public health outcomes.

Small farmers around the world are often underbanked or
unbanked and get left out of global supply chains. BanQu

uses blockchain technology to give small farmers access tothe financial system for accounting and payments so they can
expand their reach and take part in the global economy.

Every year, more than $1 trillion in unused inventory, both raw
materials and finished goods, sits in warehouses going towaste. Inventory tracking company Queen of Raw leverages
blockchain technology to help companies keep better trackand make the most of their inventory.

Compass Coffee

Stablecoin use Case

Compass Coffee, a veteran-owned coffee brand with 18
stores in the Washington, DC area, currently loses revenue
per year to credit card processing fees that could instead beinvested in its business, employees and customers.

“Accepting crypto payments could be

In partnership with Coinbase, Compass now offers
customers the option to pay for their morning brew with
USDC, making credit card transaction fees a moot point. The
initiative highlighted that the estimated $126 billion paid by
US merchants in credit card transaction fees in 2022 was 2.5x  
the size of the entire US coffee shop market.
24

Michael Haft, Compass Coffee Founder and CEO

It emphasized that these fees could have been significantly
reduced by using blockchain technology instead of credit
cards. It’s also a recent example of how crypto is gradually
making its way to Main Street.

State of Crypto: The Fortune 500 Moving Onchaintransformational for our business.  
We hope to help transform retailexperiences by accepting USDC”

24

Nilson Report, March 21, 2023

11

Methodology 
Unless otherwise footnoted, data and insights cited in this report are derived
from the following sources:

Fortune 100 Initiatives: An analysis of web3 initiative activity by Fortune 100
companies from Q1 2020 to early June 2024 by The Block Pro Research.
“Activity” was broadly defined to include any digital assets/blockchainrelated internal company projects, investments, partnerships, product/
service launches, and other similar initiatives. The Block conducted searchesof publicly available information using keywords such as “crypto,”“blockchain,” “tokenization”, “NFTs,” “metaverse,” and “digital assets” acrossnews sites, company filings, press releases and announcements. Search
results were manually filtered for relevance, aggregated, and deduplicated.
For each initiative in the resulting database, The Block assessed the stage ofthe initiative, the industry and the web3 use case it pertains to (e.g.,
tokenization, process automation, payments/settlement, etc.).

Fortune 100, stablecoin and tokenization case studies from research by The
Block.

Web3 Adoption Survey: A survey of 104 Fortune 500 decision makers at  
the level of director and higher, who are aware of crypto and blockchain,conducted for Coinbase by GLG, a third-party research firm, from  
April 17- 25, 2024. 

Small Business Survey: A survey of 250 financial decision-makers at US
businesses with fewer than 500 employees who are aware of cryptocurrency,
conducted for Coinbase by research firm NRG from April 24-29, 2024.

About Coinbase

Crypto creates economic freedom by ensuring that people can participate fairly
in the economy, and Coinbase (NASDAQ: COIN) is on a mission to increase
economic freedom for more than 1 billion people. We’re updating the century-old
financial system by providing a trusted platform that makes it easy for people
and institutions to engage with crypto assets, including trading, staking,safekeeping, spending, and fast, free global transfers. We also provide criticalinfrastructure for onchain activity and support builders who share our vision that
onchain is the new online. And together with the crypto community, we advocate
for responsible rules to make the benefits of crypto available around the world.
State of Crypto: The Fortune 500 Moving Onchain

12