The Fintech Blockchain Market size is expected to grow from USD 3.17 billion in 2023 to USD 21.67 billion by 2028, at a CAGR of 46.92% during the forecast period (2023-2028). Key Highlights.
New York, Aug. 10, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Fintech Blockchain Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06484306/?utm_source=GNW
The Fintech Blockchain Market size is expected to grow from USD 3.17 billion in 2023 to USD 21.67 billion by 2028, at a CAGR of 46.92% during the forecast period (2023-2028).
The blockchain-related fintech industry has been experiencing growth due to various factors, such as the rising market cap of cryptocurrencies and ICOs, increasing demand for distributed ledger technology, and adoption of advanced blockchain solutions in financial institutions. The digital transformation of the financial industry is also contributing to the growth of the fintech blockchain, as digital banking technologies and automated chatbots for customer service are experiencing rising demand.
The adoption of cryptocurrencies and digital tokens for making payments is expected to boost the market further. Many fintech organizations have also started adopting blockchain technology to make their business procedures easier, reduce fraudulent activity, and enhance the quality of service provided to their customers. Ripple and other blockchain-based platforms are gaining interest, which is anticipated to lead to greater acceptance in the future.
Stablecoins are also gaining popularity as they increase liquidity, cost savings, and stability, and they are a fascinating example of DeFi protocols in the future. DeFi and blockchain technology are expected to foster innovation across a range of industries in the next two years.
The COVID-19 pandemic negatively impacted many industries globally, and the blockchain-related fintech industry is no exception. Lockdowns and supply chain disruptions made it difficult for industry participants to predict the resurgence of the fintech blockchain industry. However, systemic changes brought on by the crisis are anticipated to have a significant impact on this sector. Despite the challenges, the fintech blockchain market is expected to continue growing in the coming years.
Fintech Blockchain Market Trends
Increasing Use of Blockchain in the Insurance Sector is expected to Drive the Market
Blockchain technology is revolutionizing the insurance industry by transforming operations and providing a range of benefits, such as cost reduction, enhanced customer experiences, increased efficiency, greater transparency, and more. This represents a significant opportunity for both fintech companies and insurance providers that are ready to embrace this transformation.
One of the key advantages of blockchain is its ability to provide transparent and trustworthy information about transactions, making it an ideal repository for data that is crucial in verifying the authenticity of insurance claims. This instills trust in the process and enables insurance providers to make accurate decisions about the percentage of the claim that can be covered.
In May 2022, a UK-based startup called Superscript and Lloyd’s, a London-based insurance market broker launched a specialized insurance product called "Daylight"for crypto businesses. This offering includes technology liability and cyber insurance, protecting against various risks such as ransomware attacks and unintentional copyright infringement.
Furthermore, with the rise of Internet of Things (IoT) technology, the amount of data generated by interconnected devices is increasing exponentially. This requires a technology that can efficiently manage large volumes of data. Blockchain enables insurance providers to manage these complex networks securely by allowing devices to communicate and manage each other peer-to-peer rather than relying on expensive data centers for processing and storage. This approach is much more cost-effective and is expected to drive the market’s growth in the future.
North America Will Experience Significant Growth and Drive the Market
Global cross-border payments have traditionally been subject to tight regulations and high costs. However, the emergence of distributed ledger technology, such as blockchain, has helped to reduce some of these costs and improve traceability. Fintech vendors are rapidly developing new platforms for the provision of online financial services, and global financial technology companies are partnering with local cellular operators, money transfer operators, and banks across the borders of the United States, Mexico, and Canada.
The recent COVID-19 outbreak accelerated the demand for digital transformation in the banking sector. As people were forced to use online services and limit their bank visits, many banking companies collaborated with fintech vendors to offer differentiated and competitive services. In the future, digital customer experience is expected to be the primary area of competitive advantage and is likely to drive the market.
One of the most significant benefits of blockchain technology offered by fintech vendors is the reduction of fraud and cyber-attacks in the financial world. Blockchain helps to curb data breaches and other fraudulent activities by enabling fintech businesses to share or transfer safe and unaltered information through a decentralized network. This added security and transparency could help to build trust between financial institutions and their customers.
Fintech Blockchain Industry Overview
The fintech blockchain market is highly competitive, with dominant players such as Amazon Web Services, AlphaPoint Corporation, Bitfury Group Limited, Oracle Corporation, and Digital Asset Holdings. These players are focusing on expanding their customer base globally through strategic collaborative initiatives to increase their market share and profitability. However, mid-size to smaller companies are also making their presence known through new product innovations and securing new contracts.
In January 2023, Striga, a banking-as-a-service platform, launched a new product - crypto on-ramp and off-ramp APIs for neo banks, DeFi, and Web3 apps. The platform’s objective is to simplify the process of holding or withdrawing Bitcoin and make it easier for more customers to purchase and trade cryptocurrency. The newly introduced crypto-to-fiat or fiat-to-crypto APIs can be integrated into any fintech or cryptocurrency product.
In January 2022, Etherisc, an open-source, decentralized insurance protocol and ecosystem launched a blockchain-backed insurance application. The application can autonomously issue policies and execute payouts for travel delays and cancellations, and payments are processed through the blockchain payments program Gnosis Chain (formerly xDai Chain). The initial payment option for the insurance application is the U.S. dollar-backed USD Coin.
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