Nearly 60% of multinational companies are now using at least 1 cryptocurrency for cross-border payments, study shows
- 58% of multinational companies are using at least one cryptocurrency, according to a study by Pymnts.
- Bitcoin is the most used cryptocurrency by firms generating more than $10 million a year in revenue.
A large portion of international companies are using cryptocurrencies for cross-border transactions, highlighting an increase in institutional adoption of digital assets, but fewer firms are extending crypto services to their clients, according to a study from data platform Pymnts.
57.6% of multinational companies are using at least one form of cryptocurrency, with bitcoin the most widely used, said Pymnts in a study conducted with Circle, the peer-to-peer payments technology company behind the USDC stablecoin. Stablecoins are cryptocurrencies tied to government-issued, or fiat money like the US dollar.
Usage of bitcoin was at 31% followed by stablecoins at 29% and ether at 24%, according to the study based on surveys in April of executives at 250 cross-border businesses that generate at least $10 million in annual revenue.
The global firms largely see smart contracts and cross-border payments as the leading use cases for cryptocurrencies and blockchain technology. Executives also cited reduced transaction costs and simpler transfer procedures compared with traditional international payment options in conducting cross-border business as reasons for using cryptocurrencies.
There's a potential for a pickup in the use of ether, with 21% of companies who don't use the token of the ethereum blockchain expressing interest in it.
But only one in 10 financial institutions gives their business-to-business customers the ability to use cryptocurrency despite interest among clientele.
"Offering cryptocurrency and blockchain solutions to their customers requires [financial institutions] to consider a host of technological, commercial and regulatory variables, and they easily can find themselves at a loss about what to prioritize," Pymnts said in its statement about the study.
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