Europe drives institutional crypto adoption: Blockchain Expo Amsterdam

According to prominent speakers at Blockchain Expo Europe 2023 in Amsterdam, Europe remains a fertile ground for the cryptocurrency ecosystem to flourish compared to the harsh regulatory environment.

Cointelegraph attended the event held at the RAI Amsterdam Convention Center for the second year running, Blockchain Expo, a major tech expo event being hosted in the Netherlands.

The event typically attracts prominent industry players from the financial world to demonstrate how blockchain technology can be used to power new products and solutions across multiple industries.

From finance, logistics, healthcare and marketing, blockchain technology and Web3 functionality continues to be a key growth area for various industry players.

MCA is good for institutional adoption.

Regulatory issues remain front and center, as seen in a fireside discussion by Coinbase's Head of Institutional Trading James Mork and Zodia Markets Co-Founder Nick Philpott.

Philippot describes the EU Markets in Crypto-Assets (MiCA) regulations as a progressive regulatory measure to guide the development of the sector while protecting users.

“Institutions feel more comfortable when they know there is a framework within which they can operate, which is contrary to the situation in countries like the United States.”

Philpott points to the US regulatory landscape as a cloud of uncertainty over the cryptocurrency ecosystem. This was primarily prompted by the Securities and Exchange Commission's securities violations against key industry players including Coinbase, Ripple and Binance.US.

Morek, who leads Coinbase's institutional sales in the EMEA and APAC regions, pointed to the establishment of clear regulatory parameters in the EU and the UK, which has helped crypto-related companies continue to do business.

Off-the-record discussions suggest that major players such as Coinbase will continue to attract interest from institutional clients seeking exposure or protection to some cryptocurrencies outside of the United States.

Related: EU's new crypto law: How MCA can make Europe a digital asset hub

This includes a wide range of potential clients from traditional fund managers, large corporations, private banks and various businesses. Morek told Cointelegraph that Coinbase currently serves more than 1,300 institutional clients worldwide.

Legal frameworks that have long allowed companies to have onshore and offshore entities continue to be an important element in allowing cryptocurrency exchanges and companies to offer services across multiple jurisdictions.

Philpot emphasized that the UAE is a fast-growing crypto and Web3 hub that is actively seeking to attract the biggest companies in the industry. Binance has already established a seat in the United Arab Emirates, while Coinbase is reportedly looking to establish a base of operations in the jurisdiction as early as 2023.

An alternate future

The token remains the draw card for a variety of institutions, including major banks and financial institutions seeking to issue and manage loans and investments.

Cointelegraph also spoke to Martijn Sibrand, Digital Assets Ecosystem Manager at Dutch bank ABN AMRO. He shared insights on ABN AMRO's recent digital green bond, using Polygon's Layer-2 Ethereum staking technology to raise €5 million ($5.3 million).

Seabrand says blockchain technology is proving to be a valuable tool for banks to better serve the capital markets.

“It's funny, if we have conversations in banking now, people say that capital markets have been around for a long time and we haven't seen much innovation yet. This could be a big change in which many banks invest.

Sibrand added that ABN AMRO is demonstrating blockchain-based digital bond exploitation at conferences and exhibitions to both capital market players such as major banks as well as private companies looking to raise funds.

“We see two tracks. We have institutional that serves traditional capital markets. But we also have the opportunity to help clients that are too big for crowdfunding but too small for capital markets.”

Siebrand added that tokenized debt offerings can be useful for companies that don't want to sell equity. However, before ABN AMRO can create a roadmap to further develop its blockchain token offerings, they need to further develop regulatory frameworks:

“We think private markets with one-to-one or two or three investors are going to be easier to scale than institutional ones.”

NFTs remain valuable to institutions.

Mia Vann, EMEA Lead for Blockchain and Digital Assets at MasterCard, delves into the value of intangible tokens (NFTs) for institutional users. The sector generated $1.9 billion in sales last year, according to Van, and the average number of Web3 wallets is increasing despite sellers taking over the NFT marketplace in recent months.

According to Van, luxury brands such as Breitling and Louis Vuitton actively use NFTs to provide digital twins that prove their worth. Meanwhile, major brands like Adidas and Nike continue to explore NFTs and alternative activities that give consumers ownership of things in the physical world and dynamic environments.

RELATED: NFT-Type Debit Cards Are The Future Of Web3 – Animoka Founder Says $30M Investment

MasterCard is becoming part and parcel of the Web3 ecosystem. Earlier this year, Animoca Brands announced a $30 million investment in the Neobank platform. A unique offering of the platform is a customizable NFT-styled crypto debit card. Users can decorate their Mastercard with the NFTs they hold digitally, allowing them to display the venerable board monkey in the physical world.

Van declined to comment on Mastercard's blockchain and digital asset strategy and partnerships.

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