Payment Giants Enter Crypto Assets, Driving Industry Development

Recently, a globally renowned payment company announced an innovative initiative to connect Crypto Assets with traditional fiat currency. The company stated that it has successfully completed transaction settlements using the USDC stablecoin backed by the US dollar through the Ethereum network.

As soon as this news was announced, it immediately triggered a market reaction. The price of Bitcoin surged rapidly, breaking the $59,000 barrier, with an increase of over 8%.

The payment company stated that they have launched a pilot program in collaboration with a payment and encryption platform, and plan to open this feature to more partners later this year. Media reports indicate that this initiative will allow 61 million customers in the company's network to make payments using Crypto Assets.

Supporting the use of digital coins as a new settlement method marks an important step in the company's "network of networks" strategy. This strategy aims to enhance the flow of various forms of funds both within and outside its network. The company stated that it will leverage its global influence, partnerships, and brand reputation to add value to the ecosystem, making Crypto Assets safer, more practical, and better suited for payments.

Institutions are actively positioning themselves in Crypto Assets

Since last year, various institutions have begun to enter the Bitcoin and Crypto Assets field on a large scale. Prior to this, another mainstream payment platform announced support for the buying, selling, and payment services of Bitcoin and other Crypto Assets. The company's executives even filmed videos demonstrating the process of purchasing goods with Bitcoin.

Platforms like this that support the direct purchase of Crypto Assets or allow payment with Crypto Assets will undoubtedly bring significant traffic and positive impact to the Crypto Assets industry. A billionaire venture capitalist stated on social media that after a payment platform announced support for Bitcoin, major banks have been discussing how to support Bitcoin, which is no longer an option.

A well-known Crypto Assets investment fund has further increased its investment efforts this year. So far, the number of bitcoins held by the fund has reached 650,000 coins, making it the largest institutional holder in the world. The fund's operating model dictates that it can only continue to buy and not sell, which alleviates concerns about large-scale sell-offs to some extent.

In addition to institutions providing "buying assistance services", some companies have started to treat Bitcoin as a strategic reserve asset. A software company has become the world's first publicly traded company to officially incorporate Bitcoin into its corporate reserves, having purchased over 20,000 coins and continuously seeking opportunities to accumulate at various price levels. The founder of the company has also personally purchased a substantial amount of Bitcoin.

After this company, other large enterprises began to follow suit. A mobile payment company invested $50 million to purchase approximately 4,709 bitcoins as reserve assets. An asset management company also revealed that it had purchased $114 million worth of bitcoins as part of its asset reserve strategy.

More notably, in February of this year, a well-known electric vehicle manufacturer announced a $1.5 billion investment to purchase Bitcoin and stated that it would support the purchase of its products with Bitcoin in the future. This news quickly ignited market sentiment, leading to a nearly 14% increase in Bitcoin's price within an hour, reaching a high of $44,195.

Even some traditional financial analysts who once held a critical attitude towards Bitcoin have begun to change their stance, with some predicting that the price of Bitcoin will reach $400,000 in the 2021 bull market.

Crypto Assets Going Mainstream

With the promotion of numerous institutions, Crypto Assets were no longer seen as an alternative market in 2021, and more and more institutions and investors began to focus on the blockchain and Crypto Assets field. The participation of these institutions may have the following impacts on the industry:

1. Promote industry compliance and integrate into the mainstream financial system. With the entry of large institutions and Bitcoin's market value surpassing one trillion dollars, regulatory authorities in various countries have had to respond actively, formulating relevant regulations to push the industry towards compliance. Some countries have begun to explore the integration of Crypto Assets and traditional finance, which will provide more policy support for industry development.

2. Expand market consensus and attract more investors. More and more enterprises and platforms support the use of Crypto Assets, giving more users the opportunity to engage with and understand the value and advantages of Crypto Assets. This may encourage more people to transition from being spectators to investors.

3. Enhance investor confidence and promote market development. Institutional investors typically have large amounts of capital and tend to hold assets for the long term, making them less susceptible to short-term fluctuations. As more institutions hold Bitcoin, it may stimulate the enthusiasm of a wide range of investors, strengthen market confidence, and drive prices up.

Seize the Opportunity

Any innovative thing may face skepticism and criticism during its early development, as they often clash with the mainstream of the time. However, these new things may represent the future development trends. Bitcoin is such a case; after more than a decade of development, despite encountering setbacks multiple times, it still demonstrates strong vitality and value.

In the upcoming digital economy era, digital assets may become an important part of daily life. As more and more institutions and even countries start to pay attention to Bitcoin, this market may gradually mature and stabilize. For investors who participated relatively early, now may be an opportunity worth noting.