{"id":66994,"date":"2023-12-15T14:21:30","date_gmt":"2023-12-15T18:21:30","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=66994"},"modified":"2023-12-15T14:21:33","modified_gmt":"2023-12-15T18:21:33","slug":"paxos-report-us-firms-keen-on-crypto-despite-hurdles","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/paxos-report-us-firms-keen-on-crypto-despite-hurdles\/","title":{"rendered":"Paxos Report: US Firms Keen on Crypto Despite Hurdles"},"content":{"rendered":"\n<p>A report by <a href=\"https:\/\/coinscreed.com\/staging\/abu-dhabi-grants-paxos-approval-for-stablecoin-issuance.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Paxos,<\/a> a crypto firm that offers blockchain-based solutions for financial institutions, reveals that 99% of surveyed US financial services companies are interested in crypto projects this year but face various barriers such as complexity, volatility, and cost.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/12\/PaxosSurvey-.jpg\" alt=\"\" class=\"wp-image-66996\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/12\/PaxosSurvey-.jpg 1024w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/12\/PaxosSurvey--300x169.jpg 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/12\/PaxosSurvey--768x432.jpg 768w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/12\/PaxosSurvey--18x10.jpg 18w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/12\/PaxosSurvey--750x422.jpg 750w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The report, published on December 13, 2023, is <a href=\"https:\/\/paxos.com\/2023-enterprise-digital-asset-adoption-report\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">based on a survey of 400 executive<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a>s from American financial institutions with at least five million users and $50 billion in assets under management or $50 billion annual payments volume. <\/p>\n\n\n\n<p>The survey aimed to explore the dynamics of the evolving digital asset landscape and the opportunities and challenges for financial services companies.<\/p>\n\n\n\n<p>According to the report, <strong>99% of the surveyed companies<\/strong> indicated they are interested in crypto projects this year, compared to<strong> 88% in 2022<\/strong> and <strong>76% in 2021.<\/strong> The report also found that <strong>69% of the companies<\/strong> have already launched or plan to launch crypto projects within the next year, while <strong>30% are still exploring<\/strong> or evaluating the possibilities.<\/p>\n\n\n\n<p>The report suggests that the surge in interest is driven by several factors, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The growing demand and adoption of crypto assets by consumers and businesses, especially in the wake of the COVID-19 pandemic, which accelerated the shift to digital payments and e-commerce<\/li>\n\n\n\n<li>The increasing innovation and diversity of crypto products and services, such as stablecoins, decentralized finance, non-fungible tokens, and central bank digital currencies<\/li>\n\n\n\n<li>The recognition of the long-term value and resilience of digital assets and blockchain technology, which can enhance transparency, efficiency, security, and trust in various financial processes and transactions<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-crypto-implementation-faces-complexity-volatility-and-cost-barriers\">Crypto implementation faces complexity, volatility, and cost barriers<\/h2>\n\n\n\n<p>Despite the heightened enthusiasm for adopting crypto, the report also reveals a spectrum of challenges faced by the financial services companies. The most prominent barrier, identified by 56% of the respondents, was the complexity associated with implementing crypto solutions. <\/p>\n\n\n\n<p>The report emphasizes the prevailing resilience of digital assets and blockchain technology, which can withstand market events, economic uncertainties, and the demand for increased regulatory clarity. However, it also acknowledges the difficulties of integrating crypto solutions into the existing financial infrastructure, which requires technical expertise, operational readiness, and legal compliance.<\/p>\n\n\n\n<p>The complexities of crypto infrastructure were echoed by Jonathan Anastasia, an executive at <a href=\"https:\/\/coinscreed.com\/staging\/mastercard-debit-features-to-be-integrated-into-xumm-wallet.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Mastercard, <\/a>who highlighted the challenge of navigating this landscape. <\/p>\n\n\n\n<p>Anastasia noted that collaborating with a crypto-native firm was essential, citing the need for a partner with deep expertise in the field to facilitate the journey of bringing companies together. He said that Mastercard partnered with Paxos to launch a new platform that enables banks and crypto companies to offer crypto services to their customers.<\/p>\n\n\n\n<p>Market volatility emerged as a substantial concern for 51% of the respondents, posing a significant hurdle to the advancement of crypto and blockchain projects within their organizations. <\/p>\n\n\n\n<p>The report notes that crypto prices are subject to rapid fluctuations, influenced by various factors such as supply and demand, market sentiment, regulatory developments, and technological innovations. The Paxos report also points out that crypto volatility can create opportunities for arbitrage and hedging, as well as risks for liquidity and security. <\/p>\n\n\n\n<p>Additionally, 43% of the respondents cited the financial costs associated with implementation as a noteworthy roadblock. The report states that implementing crypto solutions can entail significant investments in terms of infrastructure, personnel, and compliance. It also suggests that the potential benefits of crypto solutions, such as increased revenue, customer retention, and competitive advantage, can offset the costs of implementation. <\/p>\n\n\n\n<p>The report indicates that fewer than 2% of the survey participants considered a lack of belief in the benefits of blockchain as a hindrance, highlighting the industry's recognition of the transformative potential of blockchain and crypto technologies. <\/p>\n\n\n\n<p>The findings underscore the complex landscape within which financial institutions are navigating the integration of digital assets. The high level of interest is indicative of a broader recognition within the industry of the transformative potential of blockchain and crypto technologies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A report by Paxos, a crypto firm that offers blockchain-based solutions for financial institutions, reveals that 99% of surveyed US financial services companies are interested in crypto projects this year but face various barriers such as complexity, volatility, and cost. The report, published on December 13, 2023, is based on a survey of 400 executive [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":66996,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[13404,292,12338],"class_list":["post-66994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-crypto-projects","tag-paxos","tag-u-s-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/12\/PaxosSurvey-.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/66994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=66994"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/66994\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/66996"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=66994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=66994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=66994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}