Bitcoin and Institutional Investment: A 2023 Update
Explore the growing institutional adoption of Bitcoin and its global expansion in 2023.
The institutional embrace of blockchain has been on an upward trend in the past few years. In 2023 alone, BlackRock and Fidelity filed for a BTC spot ETF with the SEC, highlighting growing institutional crypto interest. This sentiment is further echoed by the launch of EDX Markets, a new crypto exchange backed by industry giants. In Singapore, the Token2049 conference showcased the blend of traditional finance and crypto, with DBS Bank’s strategic yet cautious approach to crypto standing out. Meanwhile, the DeFi sector’s total value locked (TVL) concept has expanded to include tokenised real-world assets, reflecting blockchain’s broader adoption by traditional financial institutions.
Amidst this backdrop, Bitcoin has carved a significant niche. In 2023, the Bitcoin blockchain achieved the remarkable milestone of processing over 1 billion transactions, showcasing its robustness and widespread adoption. Its unmatched scalability, speed, and cost-effectiveness make it a standout, further emphasising the growing institutional interest in blockchain. Bitcoin’s achievements underscore its potential to be at the forefront of the blockchain revolution.
Furthermore, Fundstrat Global Advisors highlighted Bitcoin’s emphasis on enterprise-grade data processing and business applications. Companies like Synerio and UNISOT already leverage Bitcoin’s capabilities for real-world solutions.
Institutional Collaborations and Partnerships
2023 has seen a surge in institutional collaborations and partnerships into blockchain and crypto-related projects, underscoring blockchain technology’s growing appeal and potential. For Bitcoin, some of these include:
Zumo and Block Dojo Partnership: Zumo, a UK-based digital-asset-as-a-service platform, has forged a significant alliance with the Block Dojo incubator. This collaboration is a mere partnership and a strategic move to bolster the blockchain ecosystem. Block Dojo, which accounted for 24% of all capital raised for tech startups in 2022, has been a beacon for startups leveraging blockchain’s benefits, such as immutability, transparency, and micropayments. With Bitcoin being the preferred choice for these startups, Zumo’s partnership aims to provide them seamless access to its APIs. Furthermore, Zumo has introduced an on/off ramp for the BSV/GBP currency pair, facilitating easy conversion between BSV and GBP, thereby streamlining financial transactions for businesses in the UK.
DRIVE Markets and Bitcoin: DRIVE Markets, a renowned institutional cryptocurrency and fiat exchange, has caught the industry’s attention with its collaboration with Bitcoin. This partnership has been further solidified with a significant investment from entrepreneur Calvin Ayre. The collaboration aims to lure traders from the massive $5 trillion forex market by offering a crypto trading experience that mirrors forex trading. To further this ambition, DRIVE Markets launched DRIVE Pay, a multi-protocol, real-time remittance network for fiat and cryptocurrencies. The Bitcoin blockchain is the anchoring ledger for this initiative, with BSV coins serving as an intermediary currency to enhance liquidity.
Digital Pilipinas and DTI Collaboration: With its robust GDP growth rate of 7.6% in 2022, the Philippines is poised to become a pivotal investment and digital bridge to the thriving ASEAN region. Recognising this potential, Digital Pilipinas, a significant private sector-led movement, has joined forces with the Department of Trade and Investment – Board of Investments (DTI – BOI). This collaboration supports the “Make it Happen in the Philippines” campaign, which seeks to spotlight the myriad investment opportunities the Philippines offers to the global market. The joint venture emphasises the Philippines’ potential as an investment hub and a gateway to the ASEAN region and the international stage. With initiatives like these, the country is undoubtedly on a trajectory to solidify its position as a primary investment destination.
These collaborations and partnerships testify to the growing institutional interest in blockchain technology and its potential to revolutionise industries and economies.
Global Expansion and Market Penetration
As countries and institutions recognise the transformative potential of blockchain technology, and by extension, Bitcoin, several countries have made strides in adopting blockchain utilising Bitcoin.
Bitcoin in Japan: Tokyo, the heart of Japan’s bustling economy, recently hosted its inaugural Bitcoin-specific seminar. This event, targeting developers and business professionals, was a collaborative effort between nChain and the FinTEK Centre for Finance, Technology, and Economics at Keio University. The seminar showcased Bitcoin’s unique selling points, emphasising its unparalleled speed, cost-effectiveness, and security. Dr. Pagani from nChain elucidated the “Web3 revolution” and the significance of a decentralised, user-centric, and P2P internet.
India’s Decentralization Drive: with its rich tapestry of cultures and traditions, India is now weaving a new narrative around blockchain. The Enterprise Utility Blockchain Summit, organised in the tech hub of Bengaluru by TimeChain Labs and Nu10 Technologies, aimed to shift the prevailing narrative around blockchain by emphasising its real-world utility. Among the various initiatives discussed, Ceedi stood out. Ceedi is a decentralised asset exchange designed for last-mile delivery workers, showcasing the practical applications of blockchain in everyday scenarios. The synergy between IPv6 and Bitcoin was also highlighted, positioning Bitcoin as the enabler of a true peer-to-peer internet using IPv6.
Philippines’ Blockchain Endeavors: The Philippines, an archipelago known for its stunning beaches and vibrant culture, is now making waves in the blockchain arena. The launch of Block Dojo Philippines, a startup incubator, signifies the country’s commitment to nurturing and upskilling local talents in blockchain and Web3. Spearheaded by Stefan Matthews, nChain Co-founder and Executive Chairman, this 12-week incubator program is set to commence in January 2024 in Bataan. The initiative aims to educate Filipinos about blockchain and unlock innovative applications, positioning the Philippines as a hub for blockchain innovation.
2023 has seen Bitcoin make significant inroads in diverse markets, from the technologically advanced landscapes of Japan to the emerging economies of India and the Philippines. These efforts highlight the global expansion of Bitcoin and the vision of a decentralised future.
Reflecting on 2023’s Blockchain Revolution
It’s evident that 2023 has been a cornerstone for blockchain technology, Bitcoin. From processing a staggering billion transactions to forging influential partnerships, Bitcoin has showcased its potential as a game-changer. With countries like Japan, India, and the Philippines embracing its capabilities, the future of blockchain looks promising. As institutions continue recognising its transformative potential, the stage is set for further innovations and global adoption.
