Big Tech Behemoths Silently Embracing Crypto & DeFi – Alphabet (NASDAQ:GOOGL), Goldman Sachs Group (NYSE:GS)
Crypto and decentralized finance is not nearly as nebulous as many traditional investors would have you believe. On the contrary, DeFi and token technology have been embraced by some of the world’s most innovative companies, if not quietly. The initial uncertainty and nerves of some to get involved have faded, but if there are still any concerns, here are a few giants plunging into DeFi whole hog:
Googleits parent company Alphabet GOOGLE has been one of the most active investors in cryptocurrencies and DeFi technology. The innovation giant invested a whopping $1.5 billion in four separate blockchain companies between September 2021 and June 2022. These investments included digital escrow company Fireblocks, venture capital firm Digital Currency Group, lightning node infrastructure platform Voltage, and blockchain video game company Dapper Labs. In fact, there doesn’t seem to be an alternative investment vehicle in the cryptosphere that Alphabet hasn’t embraced. Ever since Meta, formerly Facebook, unveiled its plan for the so-called “metaverse,” Alphabet has plowed billions into similarly related technology. That in itself has opened up alternative investments in the metaverse, such as NFTs and digital real estate.
Goldman Sachs GS made history in March of this year by becoming the first major US-based bank to complete an over-the-counter cryptocurrency trade. This was a ground-breaking move by a traditional financial institution that has previously been skeptical of blockchain technology. The trade used a non-deliverable Bitcoin-related instrument between itself and cryptocurrency dealer bank Galaxy Digital, a technology-driven firm that offers financial solutions spanning the world of digital assets. An interesting thing to note about Galaxy Digital is that the founder and current CEO previously worked for Goldman Sachs for 11 years.
South Korean technology giant Samsung SSNLF is also moving heavily into the world of DeFi and cryptocurrencies. According to local media reports, Samsung Securities is currently working on its own cryptocurrency platform that is scheduled to be released in the first half of 2023. If these reports are accurate, it would be safe to assume that Samsung, one of the largest companies in the technology field, may even develop their own crypto token. These alleged tech investments are just the tip of a very large Samsung DeFi iceberg, which has already invested in Aleo, a platform for building private blockchain applications, and many more leading technologies.
NFTs and digital real estate have taken the world by storm ever since Meta META, as mentioned earlier, announced their plans to create a digital universe: the “metaverse.” Microsoft’s venture capital arm also believes demand for tokenized art and real estate will stick around, betting $27 million on NFT studio Palm. This device enables easy development and deployment of large-scale NFT droplets on the Palm Network. According to company co-founder and CEO Dan Heyman, Palm Network envisions programs to create millions of NFTs with tools that connect communities and reward true fans of NFT technology.
Some DeFi providers have such potential that several tech giants have invested in them. This is the case for Talos, which has seen both PayPal PYPL and Wells Fargo WFC invest millions in the company’s institutional infrastructure technology that supports digital asset trading. As a matter of fact, Citigroup, Wells Fargo and BNY Mellon were among several investors who valued the crypto trading firm at a whopping $1.25 billion. With a valuation like that, it’s no wonder Talos raised $105 million in a recent Series B funding round.
The list of institutions here is sure to grow as fast as the technology that has fascinated them. The evolution of the sphere is seemingly endless with countless opportunities for individual and global entities to engage in. One thing is certain, this originally obscure technology is here to stay.
