Will Blockchain Adoption By Big Institutions 'Hedge Against Inflation' And Boost Returns?

Paul Giordano, vice president of digital assets at MARA, recently shared his perspective on the surge of institutional adoption of blockchain ahead of the upcoming Benzinga Future of Digital Assets event.

He highlighted how major players like BlackRock and PayPal are leveraging blockchain technology, a development he believes will profoundly impact the cryptocurrency market.

Institutional Appeal for Blockchain

Giordano attributed the increased interest from large financial institutions to blockchain technology’s growing maturity. According to Giordano, firms like BlackRock have launched blockchain-driven products to address the rising demand for alternative assets, which he said: "help diversify portfolios, increase liquidity and safety, hedge against inflation, and increase risk-adjusted returns."

He explained that BlackRock's move to launch a highly successful exchange-traded fund (ETF) demonstrates that demand for such assets is becoming mainstream. PayPal's use of blockchain further illustrates this shift, Giordano noted, as the payment platform has integrated stablecoins to improve transaction speed and reduce costs.

"Their stablecoin PYUSD is their attempt to lever blockchains," he said. By utilizing stablecoins, PayPal aims to enhance the efficiency of its payment systems, bringing blockchain closer to everyday transactions.

The Role of Smart Contracts and Tokenization

Another area gaining traction among institutions is tokenization, particularly of real-world assets. Giordano highlighted how these firms explore smart contracts for faster settlements and improved liquidity in various financial operations.

He stated that integrating blockchain and smart contracts aims to ” streamline financial operations" and could reduce price volatility while attracting more institutional interest.

The Path to Broader Adoption

As more established financial entities continue to enter the blockchain space, Giordano believes this could lead to an accelerated regulatory framework and the emergence of new products in decentralized finance (DeFi). He emphasized that these developments "are significantly increasing the legitimacy of crypto assets" and may reshape the financial landscape to improve accessibility and stability.

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As the digital asset market continues to mature, the convergence of regulatory shifts, M&A activities, and adoption trends will define the future of this dynamic field. Benzinga’s Future of Digital Assets event in New York City this November will provide industry leaders and investors with a platform to explore these developments further, offering insights into the evolving regulatory environment and the latest market dynamics.

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