Payment industry giants enter the Crypto Assets space, bringing new opportunities for industry development.

Recently, an important player in the global payment sector announced the completion of an innovative transaction settlement solution that connects Crypto Assets with traditional fiat currency. This payment company utilized the USD-backed stablecoin USDC to complete transaction settlements through the Ethereum network.

Once this news was announced, it immediately triggered a market reaction. The price of Bitcoin rapidly surged, breaking through the $59,000 barrier, with an increase of more than 8%.

The payment company stated that it has partnered with a Crypto Assets platform to launch a pilot project and plans to offer this option to more partners later this year.

According to media reports, this payment giant has integrated crypto applications into its network, enabling tens of millions of customers to use Crypto Assets for payments.

The support for using digital currency as a new settlement method marks an important progress in the company's "network of networks" strategy. This strategy aims to enhance various forms of capital flow.

By leveraging its global influence, partnerships, and brand reputation, the company is committed to creating differentiated value for the ecosystem and making Crypto Assets safer, more practical, and better suited for payment scenarios.

Large-scale Institutional Entry into the Market

Since last year, various institutions have been actively laying out their strategies in the Bitcoin and Crypto Assets fields. The entry of this payment giant has also been influenced to some extent by this broader environment.

Prior to this, another mainstream payment platform had first expressed support for the buying and selling of Bitcoin and other Crypto Assets as well as payment services. The head of the platform even personally recorded a video demonstrating the process of purchasing goods using Bitcoin.

Platforms like these hold a significant position in the overseas payment sector. Directly purchasing Crypto Assets or using Crypto Assets for payments on such platforms will undoubtedly bring huge traffic and positive impacts to the Crypto Assets industry.

A well-known investor stated on social media that as major payment platforms announce support for Bitcoin, various banks are also beginning to discuss how to support Bitcoin, which is no longer an option.

A well-known Crypto Assets fund has increased its investment efforts this year, continuously accumulating Bitcoin. Currently, the number of Bitcoin held by the fund has reached 650,000 coins, ranking first in the world among institutional holders.

It is worth noting that the operation mode of the fund determines that it can only continuously buy in and cannot sell out. After investors hand over funds or Bitcoin to the fund, they are effectively locked in the fund, and the market does not need to worry about these coins being sold off in large quantities.

In addition to institutions that provide investment channels, there are companies that use Bitcoin as a strategic reserve asset. A publicly listed company has purchased over twenty thousand coins through various channels and has been looking for opportunities to increase its holdings. The company's founder personally holds tens of thousands of coins.

After this company took action, other large companies also began to hoard Bitcoin one after another. In October of last year, a mobile payment giant announced an investment of $50 million to purchase approximately 4,709 Bitcoins as reserve assets. A few days later, an asset management company also revealed that it had purchased Bitcoins worth $114 million.

In February this year, a well-known electric vehicle manufacturer announced an investment of $1.5 billion to purchase Bitcoin and plans to support the use of Bitcoin to buy its products in the near future. This news quickly ignited market sentiment, with the price of Bitcoin rising nearly 14% within an hour, reaching a high of $44,195.

Even some financial analysts from institutions that have traditionally criticized Bitcoin are beginning to change their views, with some predicting that Bitcoin's price will reach $400,000 during the bull market in 2021.

Crypto Assets Go Mainstream

With the promotion of numerous institutions, Crypto Assets were no longer seen as an alternative market in 2021, and more and more institutions and investors began to pay attention to the blockchain and Crypto Assets field.

The entry of institutions may bring the following effects:

1. Promote industry compliance and integrate into the mainstream financial system.

With major institutions entering the market, the market capitalization of Bitcoin has surpassed one trillion dollars, and the influence of the Crypto Assets market is now unparalleled. This has prompted regulatory agencies to actively respond, formulate relevant regulations, and push the industry towards compliance. Some countries have begun to explore the integration of Crypto Assets with traditional finance at the regulatory level, rather than outright rejection. This will provide more policy support for industry development, entering a new stage of standardization and mainstreaming.

2. Expand market consensus and attract more investors

In the past, many people were hesitant about Crypto Assets due to regulatory restrictions. Nowadays, more and more institutions and platforms support the use of Crypto Assets for settlement or payment, giving more users the opportunity to engage with Crypto Assets and recognize their value and advantages. This will gradually change people's attitudes, prompting them to further understand the Crypto Assets market, ultimately transforming them from bystanders into investors.

3. Enhance investor confidence and drive the market up

Institutional investors usually have large amounts of capital and hold long-term, primarily valuing Bitcoin's anti-inflation and appreciation effects, and will not sell easily. As more institutions accumulate Bitcoin, it will continuously stimulate investment enthusiasm, enhance market confidence, and trigger a sustained upward trend. This also transformed the bull market of 2021 from a retail-driven market to an institution-led market.

Seize the Opportunity

Any great new thing faces skepticism and criticism in its early stages of development, as it often clashes with the mainstream of the time. But they represent the future and a new historical development trend.

Bitcoin is an innovation that has grown out of controversy. Despite experiencing multiple crackdowns and blockades, it still demonstrates strong vitality and value.

In the upcoming digital economy era, digital assets will become an important part of daily life. Allocating high-quality digital assets will also become a mandatory course for investors.

As more and more institutions and even countries begin to lay out their strategies for Bitcoin, this market will gradually move towards maturity and stability. For relatively early investors, now may be the time to seize the opportunity.