Fintech behemoth, PayPal, and traditional asset management firm, Franklin Templeton are making headlines in the crypto space. They are edging deeper into the domain with PayPal rolling out new features and partnerships, while Franklin Templeton is seeking a Bitcoin ETF. It’s clearly becoming more mainstream, even amidst a long bearish market.
With no aggressive marketing manoeuvres, PayPal continues to quietly build out its digital assets strategy. The company has launched new on- and off-ramps for cryptocurrencies for its US clientele, a significant move given the struggles many crypto firms encounter with fiat-crypto conversions due to stringent regulations. In a major partnership, PayPal has teamed up with MetaMask, allowing US users to convert their crypto directly to USD.
However, the quiet introduction of new features and partnerships stoke speculations about PayPal’s long-term interest in cryptocurrencies. Will its digital assets strategy sustain market volatility and regulations? Only time will tell, but so far the company seems confident and consistent in its approach.
Simultaneously, Franklin Templeton is preparing to dip deeper into the crypto universe. The company has filed for a Bitcoin ETF in the U.S, joining a long list of major investment firms vying for approval for a Bitcoin investment product. The list includes industry heavyweights like BlackRock, Fidelity and WisdomTree. This move could open the floodgates for many mainstream investors looking to get exposure to Bitcoin without owning it directly.
However, the specter of regulatory issues looms large over Franklin Templeton’s Bitcoin ETF. With the U.S Securities and Exchange Commission having recently postponed decisions on spot ETF applications, it’s not certain if Franklin Templeton’s application will fare any better. Despite these uncertainties, the company’s move is seemingly indicative of a broader trend to incorporate digital assets into more traditional portfolios.
Additionally, the crypto market demands attention to the Coinbase decision to integrate layer-2 payment protocol, Lightning Network (LN), and Meta plans to build a new AI model. Despite some community members contending LN offered fewer incentives for exchanges, Brian Armstrong, the CEO of Coinbase, asked the community to be patient during the integration process. Meanwhile, Meta’s powerful AI model is expected to produce high-level text, analysis and other types of output.
In summary, several major companies are forging ever deeper links with the crypto ecosystem, suggesting mainstream acceptance, despite foreseeable challenges in terms of regulations and the current bear market. It’s becoming progressively clear that the future of finance may well be intertwined with Bitcoin and blockchain technology. But as the space matures, so too will the challenge for these companies to navigate an emerging landscape replete with both promise and uncertainty.
Source: Cointelegraph
