Disruptive? Not exactly: Silicon Valley and traditional finance giants are funding much of the white-collar blockchain industry.
The buzz around blockchain technology is all about its potential to disrupt the status quo. But the truth is Silicon Valley and traditional finance giants are funding much of the white collar blockchain industry. The market research firm CB Insights recently released an investments report showing the past 12 months marked a record-breaking peak in corporate funding for blockchain projects.
The CB Insights report tallied a total of $390 million in 2016 and $327 million from 42 equity investments deals so far in 2017. Over the past three years, 9 of the 10 largest American banks participated in fundraising rounds for six blockchain companies, which altogether amassed $267 million. This means a huge chunk of all corporate investments in the blockchain community are going to just a few companies, such as the fintech startup R3.
The rogue bitcoin community may have invented and pioneered the concept of blockchain technology. However, the old guard of American fintech is still playing a nuanced role in the rise of this new global system.