American multinational investment bank JP Morgan Chase & Co recently made headlines when Israeli startup company Ownera shared that they raised $20 million in a Series A funding round from backers like JP Morgan, along with private asset management firm LRC Group. What made Ownera an attractive company investment for banking giant, JP Morgan, is its extensive interoperability trading network for tokenized assets. Scott Lucas, Head of Markets at JP Morgan, says, “Interconnectivity is key to maintaining a liquid marketplace for tokenized assets. Ownera has developed a solution with the potential to connect multiple platforms to start building towards that liquid marketplace.”
JP Morgan was among the first wave of international banks to move into the crypto space last year. Although the blockchain industry has suffered during the bear market, this recent investment move by one of the largest financial institutions in the world indicates that traditional finance systems haven’t abandoned blockchain technology.
The Ownera platform is based on the open-source FINP2P protocol, which supports any type of securities tokenization engine on any public or private blockchain plus traditional ledgers. This innovative technology means clients have access to a unified digital securities wallet where they can efficiently invest, trade, lend and borrow against the connected tokenized assets, regardless of their trading interfaces. Ownera Co-Founder and CEO Ami Ben-David believe that “dozens of platforms are being deployed by financial institutions across the market. […] Our job is to be the neutral layer, seamlessly interconnecting them into one global distribution and liquidity network, using open-source network specifications.”
Apart from JP Morgan, the Series A financing round for Ownera includes notable companies such as Draper Goren Holm, tokentus Investment AG, Accomplice Blockchain, Polymorphic Capital, The Ropart Group, and Archax.
The Future of Cryptocurrency in the Business World
According to a 2022 industry survey, the global cryptocurrency market is projected to rise in the coming years. From $910.3 million in 2021, experts predict the market will grow to $1902.5 million by 2028, at a CAGR of 11.1% during the forecast period. The study shared that the demand for crypto has increased due to rising investments in venture capital. Additionally, the increasing popularity of digital assets, such as Bitcoin and Litecoin, can potentially accelerate the market in the upcoming years. It’s evident that cryptocurrencies are here to stay, and many people can no longer imagine a future without them. With giant companies like JP Morgan jumping into the crypto space, we can expect that more companies will follow suit and that crypto will dominate financial markets in the future.
And we can already see this happening with Asian gaming giant Nexon, which has invested an enormous sum of $100 million in Bitcoin. The company president and CEO, Owen Mahoney, said this purchase is part of their strategy to protect shareholder value and maintain the purchasing power of their cash asset. They believe Bitcoins are the new form of cash likely to retain its value, which can offer long-term stability and liquidity for future investments.
Should You Avoid Investing in Cryptocurrency?
Despite an initial LHH report on transient technologies saying that blockchain tokens will lose their appeal and demand, many businesses like Nexon are still investing in cryptocurrencies like Bitcoin. The article explained that it’s hard not to get drawn into the hype and excitement of a new and not entirely understood technology. Because of this, numerous businesses are eagerly looking for ways to invest and benefit from being part of the crypto ecosystem. But like any other form of investment, cryptocurrencies are also volatile.
Recently, a CNBC news article reported that Bitcoin has plunged more than 52% year to date and is now hovering around $21,000 per coin. It’s not only Bitcoin that’s experiencing this decline. The entire crypto market has dropped to less than $1 trillion from its November 2021 peak of $3 trillion. However, experts assure that the dip in price doesn’t mean that long-term investors should hold off on buying Bitcoin or any type of cryptocurrency available, especially if they consider it the same as investing in other assets. Instead, business leaders must be deliberate in choosing which expenses or projects are worth investing in and must not make rash decisions to avoid catastrophic consequences.
Disclaimer: The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.