With bitcoin exchange-traded funds breaking trading records and institutional investors pouring billions into crypto markets, businesses face mounting pressure to develop digital asset strategies and build a crypto infrastructure.
The recent surge in exchange-traded funds’ trading volumes. It reached unprecedented levels of $4.1 billion in a single day following the reelection of Donald Trump.
People expect a more favorable regulatory environment — signaling what many industry leaders see as a watershed moment for corporate crypto adoption.
“The first bitcoin ETF was approved by the Securities and Exchange Commission and received some of the largest capital inflows of any ETF ever created. That was a big turning-of-the-tide moment,” says Neil Bergquist, CEO of crypto exchange and bitcoin ATM provider Coinme.
He further added, “Everyone had talked about this institutional adoption. Well, here it is.”
‘They Want to See More Clarity’
Despite a flood of institutional capital, many businesses have hesitated to integrate crypto capabilities into their operations. According to Bergquist, this hesitation has stemmed largely from regulatory uncertainty, particularly among Fortune 1000 companies that saw no urgent need to take on additional regulatory risk.
“When you deal with companies that are worth more than a billion dollars and already have a good thing going, they’re less likely to take a potentially unnecessary risk,” Bergquist says.
“They want to see more clarity around how it might be regulated because what they don’t want to do is make a big investment, and then it turns out a regulator disagrees with that and creates a headache for themselves.”
The gap between surging institutional investment, limited corporate crypto integration, and bullish attitudes toward crypto regulation under the Trump administration has created an opportunity for infrastructure providers like Coinme.
The company recently pivoted to a B2B approach, looking to integrate crypto capabilities with existing financial firms. Coinme has built services ranging from know-your-customer compliance to custody solutions and trading infrastructure.
“Because Coinme has these baskets of infrastructure, we’re able to allow the partner or the token project to really pick and choose the user experience they want to provide,” Bergquist says.
He added, “Some just want to distribute the token as a reward and then allow people to sell it, redeem it for cash. So they might just use custody and sell APIs from Coinme, or maybe they want people to be able to buy it, or maybe they want people to be able to swap it.”
Blockchain-as-a-Service
Coinme’s approach is part of a broader industry trend toward blockchain-as-a-service solutions. Major technology companies, including Microsoft, Amazon, and IBM, have launched their BaaS offerings, recognizing the growing demand for enterprise blockchain solutions.
These services allow businesses to leverage blockchain technology without building and maintaining their own infrastructure—a model that could accelerate corporate crypto adoption.
Including It In Payment Systems
Bergquist sees particular potential in the intersection of traditional payment systems and crypto infrastructure. “Crypto has a lot of benefits to be used for payments because there’s no chargeback risk, there’s no Visa or Mastercard processing fees,” he notes. “It’s actually faster and cheaper as a payment rail, especially because it’s digitally native.”
This kind of efficiency advantage could prove particularly compelling for merchants facing rising payment processing costs. With many businesses passing credit card fees directly to consumers, the potential for crypto payments to offer cost savings and attract more customers could become more attractive.
“We’ve all probably seen the signs that say ‘pay in cash and get a discount,’” Bergquist says. “We will see something very similar around paying with digital currency and receiving a discount.”
However, Bergquist acknowledges that building user-friendly crypto infrastructure has taken longer than many in the industry initially expected. “Ideas are easy, execution is very difficult,” he says.
“There have been a lot of ideas around what’s possible with blockchain technology and what’s possible in crypto. But making it happen takes a very long time.”
However, There Is Still A Demand For Crypto Infrastructure
Despite these challenges, demographic trends suggest a growing demand for crypto services among up-and-coming generations. According to a recent Bank of America analysis, 28% of investors aged 21 to 43 see greater growth potential in crypto and digital assets than just 4% of investors aged 44 and older.
The surge in institutional investment through ETFs may also help drive corporate adoption by providing validation for crypto as an asset class. As Bergquist notes and ETFs like BlackRock’s attest, major financial institutions have dramatically shifted their stance toward crypto.
“Take Jamie Dimon. In 2017, he said bitcoin was fraud. Fast-forward, and J.P. Morgan’s one of the largest shareholders of MicroStrategy, and MicroStrategy uses its stock to buy bitcoin,” says Bergquist. “So there’s a sense in which J.P. Morgan is one of the largest holders of bitcoin.”
Bergquist and many other industry leaders believe the 2024 election marks a turning point for regulatory clarity in crypto. “I think when there is more regulatory support and clarity, then we’ll certainly see banks enter the fold and really just look at bitcoin as another currency, as another store of value.”
As institutional investment continues to flow into crypto markets through ETFs and other vehicles, the role of infrastructure providers like Coinme may prove crucial in connecting traditional business operations and the emerging crypto economy.
“We see ourselves as just having all the ingredients to let the partner make whatever amazing dish they want to create for their customers,” says Bergquist.
Wrapping Up!
So, if you finally decide to include crypto infrastructure, it is needed that you define the organizational needs. Also, check some used cases to help you guide through the entire process of building the infrastructure.
Take care of all the components of interoperability, secure wallets, encryption protocols, and decentralization in mind. Moreover, take care of all the resources and hardware that you would need.
Also, keep improving the crypto infrastructure according to the recent updates, keeping in mind your organizational needs. If needed, get in touch with some connectivity experts.
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