A prominent speaker at the European Blockchain Expo 2023 in Amsterdam said that Europe remains a fertile ground for the cryptocurrency ecosystem to flourish compared to a more stringent regulatory environment.
For the second year in a row, Cointelegraph participated in the event held at the RAI Amsterdam Congress Center, Blockchain Expo, which is part of the larger tech expo event held in the Netherlands.
The event typically attracts high-profile mainstream industry players from the financial world to showcase how blockchain technology can be leveraged to power innovative new products and solutions across a variety of industries.
From finance, logistics, healthcare to marketing, blockchain technology and Web3 capabilities remain key growth areas for players in different industries.
MiCA bodes well for institutional adoption
Regulatory issues remain front and center, as evidenced by a fireside chat between Coinbase co-head of institutional sales James Morek and Zodia Markets co-founder Nick Philpott.
Philpott described the EU’s Markets in Crypto-Assets (MiCA) regulation as a progressive regulatory measure designed to guide the growth of the industry while protecting users.
“Institutions feel more comfortable knowing there is a framework within which to operate, which is inconsistent with what is happening in countries like the United States.”
The U.S. regulatory environment Philpott mentioned focuses on uncertainty about the cryptocurrency ecosystem. This is largely due to separate enforcement actions taken by the SEC against major industry players such as Coinbase, Ripple, and Binance.US for alleged securities violations.
Morek, who oversees Coinbase institutional sales for the EMEA and Asia-Pacific regions, also highlighted the EU and UK establishing clear regulatory parameters that would help crypto-related companies continue to operate.
Informal conversations also indicate that major players like Coinbase continue to attract interest from institutional clients looking to gain investment or custody of certain cryptocurrencies outside the United States.
Related: New EU Crypto Law: How MiCA Can Make Europe a Digital Asset Hub
This includes many potential clients, including traditional fund managers, large corporations, private banks and various corporates. Morek told Cointelegraph that Coinbase currently serves more than 1,300 institutional clients around the world.
The legal framework that has long allowed companies to have onshore and offshore entities remains an important factor in allowing cryptocurrency exchanges and companies to provide services in different jurisdictions.
Philpott also emphasized that the United Arab Emirates is a rapidly growing cryptocurrency and Web3 hub, actively seeking to attract the largest companies in the industry. Binance has already established a foothold in the UAE, while Coinbase is reportedly exploring establishing an operational base in the jurisdiction in early 2023.
The future of tokenization
Tokenization continues to be an attraction for a variety of institutions, including mainstream banks and financial companies seeking to issue and manage debt and investments.
Cointelegraph also interviewed Martijn Siebrand, digital asset ecosystem manager at ABN Amro. He shared insights into ABN Amro’s recent digital green bond issuance using Polygon’s Layer 2 Ethereum scaling technology to raise €5 million ($5.3 million).
Siebrand said that blockchain technology has proven to be a useful tool for banks to better serve capital markets:
“What’s interesting is if we were talking within banks now, people would say capital markets have been around for a long time but we haven’t seen a lot of innovation. This could be a big change that a lot of banks are investing in.”
Siebrand added that ABN AMRO is already demonstrating its blockchain-based digital bond development at conferences and exhibitions to capital market players such as mainstream banks, as well as private companies seeking financing:
“We see two tracks. We have an institution that serves traditional capital markets. But we also have opportunities to help clients that are too big for crowdfunding but too small for capital markets.”
Siebrand added that tokenized debt issuance could be useful for companies that want to avoid selling equity. However, before ABN AMRO can develop a roadmap of work to further advance its blockchain tokenized offering, further development of the governing regulatory framework is required:
“We believe that the private market (one to one or two to three investors) involved in a private offering is easier to scale than the institutional market.”
NFTs still have value for institutions
Mia Van, Head of Blockchain and Digital Assets for EMEA at Mastercard, delves into the value of non-fungible tokens (NFTs) to institutional users. Van said the industry’s sales reached $1.9 billion in the past year, and although sellers have dominated the NFT market in recent months, the average number of Web3 wallets is still increasing.
Luxury brands such as Breitling and Louis Vuitton are actively using NFTs to provide digital twins of items to prove their provenance, Van said. At the same time, mainstream brands such as Adidas and Nike continue to explore NFT and Metaverse activation, allowing users to have ownership of objects in the physical world and Metaverse environment.
Related: NFT-style debit cards are the future of Web3 – Animoca founders secure $30M in Hi investment
Mastercard is also becoming an important part of the Web3 ecosystem. Earlier this year, Animoca Brands announced a $30 million investment in Neobank platform Hi. A unique product of the platform is a customizable NFT-style crypto debit card. Users can design their Mastercard with their digitally owned NFT, allowing them to show off that precious Bored Ape in the physical world.
Fan declined to comment on Mastercard’s blockchain and digital asset strategies and partnerships.
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