Institutional participants are gradually entering the cryptocurrency and blockchain ecosystem. A 2019 Fidelity Investments survey revealed that approximately 22% of institutional investors already have exposure to digital assets, with most investments made within the previous three years. Additionally, 40% of respondents expressed willingness to invest in digital assets over the next five years.
Jonathan Levin, co-founder and Chief Strategy Officer of Chainalysis, noted:
"In 2019, institutional involvement focused on infrastructure development, such as the launches of Fidelity Digital Assets and Bakkt. With this foundation now in place, we anticipate broader adoption as compliance and risk frameworks mature."
Banking and insurance sectors have shown particularly strong engagement, but once institutional support stabilizes in these areas, investment funds and family offices are expected to follow suit.
While regulatory hurdles remain—especially regarding compliance—here are the top 10 institutional players from the past year:
1. Libra Association (Stablecoin)
In June 2019, Facebook announced Libra, a blockchain-based stablecoin managed by the Switzerland-based Libra Association. Backed by a basket of bank deposits and short-term government securities, Libra aimed to "reshape global finance." Initial partners included Mastercard, PayPal, Visa, Vodafone, eBay, and Uber.
However, regulatory pushback ensued, with concerns about monetary sovereignty and illicit financing. By year-end, a quarter of original partners had exited, including Visa and PayPal. Despite setbacks, Libra’s launch plans for 2020 (potentially in Europe) remained intact, spurring central banks to explore their own digital currencies.
👉 How regulatory challenges could reshape Libra’s future
2. JPMorgan Chase (Stablecoin)
In February 2019, JPMorgan launched JPM Coin, a stablecoin redeemable 1:1 for USD held at the bank. Designed for institutional clients on a permissioned blockchain, its pilot was slated for late 2019 but delayed.
Despite CEO Jamie Dimon’s past skepticism (calling Bitcoin a "fraud"), JPMorgan actively pursues blockchain initiatives like its Interbank Information Network, which expands to Japan in 2020.
👉 Is JPM Coin just another stablecoin—or an XRP competitor?
3. ICE/Bakkt (Exchange)
September 2019 saw ICE launch Bakkt, the first exchange offering physically settled Bitcoin futures. After a slow start, trading volume peaked in November (5,671 contracts, $42.5M). Bakkt later introduced regulated Bitcoin options and cash-settled futures in December.
4. CFTC (Regulator)
CFTC Chairman Heath Tarbert clarified in October that Ethereum (ETH) and Bitcoin are commodities, not securities, falling under CFTC oversight. He hinted at upcoming ETH futures, signaling regulatory clarity for developers and investors.
5. Fidelity Investments (Custody)
Fidelity Digital Assets, catering to hedge funds and family offices, launched after a four-year development phase. In December 2019, it announced potential Ethereum support in 2020, addressing custody—a critical need for institutional adoption.
6. Fnality International (Banking Consortium)
A coalition of 14 global banks invested $60M in Fnality International to develop the Utility Settlement Coin (USC), a blockchain-based interbank settlement token backed by central bank collateral. Launch is expected mid-2020 pending regulatory approval.
7. Fairfax County Retirement Systems (Pension Fund)
In February, Fairfax became the first U.S. pension fund to allocate $21M to crypto via Morgan Creek Digital. By October, it added another $50M, signaling cautious but growing institutional interest.
8. CME (Exchange)
CME dominated Bitcoin futures in 2019, peaking at 33,677 contracts daily (168,000 BTC). Despite declining volume by year-end, CME announced Bitcoin options for January 2020, potentially expanding derivatives markets.
9. B3i Services AG (Insurance Alliance)
B3i, an 18-member insurance consortium, unveiled a blockchain-based catastrophe reinsurance product in July 2019, set for 2020 rollout. Smart contracts on Corda automate claims and reduce friction in risk transfer.
10. Harvard University (Endowment)
Harvard Management Company’s <$12M investment in Blockstack tokens marked elite universities’ growing crypto curiosity, following Yale’s 2018 move into crypto funds.
FAQs
Q: Why are institutions hesitant about crypto?
A: Compliance risks (50%), illicit activity fears (39%), and regulatory uncertainty (18%) remain key barriers (Chainalysis survey, 2019).
Q: Which sectors led institutional adoption in 2019?
A: Banking (JPMorgan, Fidelity) and insurance (B3i) were frontrunners, with exchanges (Bakkt, CME) and pensions (Fairfax) following.
Q: Will 2020 see more institutional crypto products?
A: Yes—expect expanded custody solutions, ETH derivatives, and interbank blockchain networks like USC.
Institutional adoption hinges on overcoming compliance hurdles, but 2019’s infrastructure investments set the stage for accelerated growth in 2020.
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