More Banks Turn to Crypto, Blockchain to Help Corporates Drive Global Growth

Many of America’s largest multinationals see the efficiency of blockchain technology as valuable to their long-term growth strategy. While blockchain tech and cryptocurrency were once considered outliers in the global marketplace, they have risen in prominence over the years because of their versatility and are now an integral part of most financial institutions’ long-term business-to-business (B2B) strategies.

Recent PYMNTS research revealed that 61% of financial institutions (FIs) consider access to cryptocurrency “very” or “extremely” important for their corporate customers, making it the most cited financial service after payment acceptance.

PYMNTS’ research showed that FIs, like corporate entities, are willing to use or offer cryptocurrencies to their clients when doing so provides tangible solutions and does not add unnecessary complexity. Forty-three percent of businesses stated that the prospect of added efficiency via the adoption of cryptocurrency or blockchain technology influences their development strategies on blockchain and cryptocurrencies, and 16% consider it the most important influence.

Today, blockchain technology powers everything from smart contracts that automate payment processing as deliveries are completed to user authentication for contactless payments.

Cryptocurrency and blockchain technology are relatively new, but they have altered the ways businesses and FIs see the future of commerce and trade. From investment to eCommerce, virtual currencies are making payments and user authentication easier for consumers, retailers and FIs seeking to remove frictions from in-store payments.

The Corporate Treasury Shift: Asset Allocation And The New Cryptocurrency Option, a PYMNTS report sponsored by Circle, is based on a survey of 250 multinational businesses with revenues ranging from $10 million to more than $100 billion conducted between April 7 and April 27, 2021.

Additional key findings from the survey include:

93% of FIs believe their business clients will eventually use digital currencies for investments and transactions. Digital currencies have emerged as a viable choice for institutional investors.

96% of FIs would use stablecoins for investing and transactions. Stablecoins are among the top choices for FIs allocating assets to digital currencies.

20% of multinationals have chosen to actively hold digital currencies as an asset management tool in recent months.

To learn more about why more corporates are increasingly turning to blockchain adoption for transaction management,  download the playbook.