Welcome to the October edition of the COSIMO Verbatim newsletter! This month we’re bringing you the latest industry news, portfolio updates, and look at how major industries from gaming to luxury are building Web3's future, signaling blockchain's evolution from speculative technology to essential business infrastructure.

October Insights

Bitcoin Nears All-Time High Just Days Before Presidential Election

Institutional Holdings of Bitcoin ETF Shares Reach $13 Billion

Nearly 50% of Traditional Hedge Funds Are Exploring Cryptocurrency Investments

Robinhood Initiates Crypto Transfers in Europe to Accelerate Global Expansion

PayPal Completes First Business Transaction with PYUSD Stablecoin

 

The Great Web3 Shift: How Traditional Industries Are Reimagining Their Future

Gaming: The Gateway to Mass Web3 Adoption

The web3 gaming sector is experiencing unprecedented momentum, with over $162 million in funding distributed across early and mid-stage ventures between February 2023 and 2024. This surge in investment is backed by heavyweight endorsements - 29 of the world's 40 largest gaming companies, including Microsoft, Tencent, Sony, and Nintendo, are actively investing in web3 gaming initiatives. The success of "Off the Grid," a battle royale shooter built on Avalanche blockchain, exemplifies this trend, attracting 5.5 million wallet addresses and generating 53 million transactions within its first week of launch, while securing a top position on the Epic Games Store.

Corporate Giants Embrace Blockchain Infrastructure

Major corporations are rapidly recognizing blockchain's transformative potential, following Coinbase's successful Base layer-2 network blueprint. Sony's announcement of Soneium, an Ethereum layer-2 network built on OP Stack, marks a significant shift in corporate blockchain adoption. With a global footprint of 900 million devices and a rich ecosystem spanning entertainment, gaming, and the PlayStation Network, Sony's blockchain initiative demonstrates how traditional companies can leverage blockchain technology to enhance customer experience, generate new revenue streams, and foster innovation across their existing business lines.

Luxury Sector Pioneers Digital Product Passports

The luxury industry is at the forefront of blockchain adoption through Digital Product Passports (DPPs). Major brands including Dior, Prada, Louis Vuitton, and Breitling are implementing blockchain-based digital identities for their products, driven partly by the EU's new Ecodesign for Sustainable Product Regulation. These digital passports provide authentication, traceability, and enhanced customer engagement while combating counterfeiting. Breitling's implementation offers customers NFT-based warranty programs and repair tracking, while Dior's B33 Sneaker collection includes blockchain-verified production information and exclusive digital benefits.

Automotive Industry Accelerates into Web3

The automotive sector's embrace of blockchain technology is exemplified by Ferrari's expansion of cryptocurrency payment acceptance across its European dealer network. Following a successful U.S. launch, Ferrari's initiative demonstrates growing confidence in crypto transactions among luxury manufacturers. The company's partnership with BitPay enables seamless cryptocurrency transactions while protecting dealers from price volatility, marking a significant step toward mainstream crypto adoption in high-value consumer transactions.

Infrastructure and Standards Drive Adoption

The emergence of the Ethereum Virtual Machine (EVM) as the industry standard is facilitating widespread enterprise adoption, with major institutions like BlackRock, Coinbase, and now Sony building on this foundation. This standardization, coupled with innovations in layer-2 scaling solutions, is creating a more accessible and efficient blockchain ecosystem. As companies increasingly recognize the potential to internalize transaction fees and streamline operations through proprietary blockchains, we're witnessing a pattern reminiscent of the early internet era, where technological infrastructure became a crucial competitive advantage.

The Road Ahead: From Early Adoption to Integration

As we progress through 2024, the integration of blockchain technology into mainstream business operations is accelerating across sectors. From gaming companies leveraging blockchain for enhanced player experiences to luxury brands implementing digital authentication systems, and traditional corporations developing proprietary blockchain networks, we're witnessing the technology's evolution from a speculative tool to a fundamental business infrastructure. With major players like BlackRock and Sony making significant moves in the space, blockchain adoption is following a pattern similar to the internet's evolution - starting with industry pioneers and gradually becoming an essential component of modern business operations. 

Portfolio Updates

Archax, the only FCA-regulated digital asset platform, has agreed to buy Spanish broker King & Shaxson Capital Markets to expand in Europe. The acquisition will allow Archax to extend its existing brokerage, trading and custody services into the EU. More here.

Black Manta Capital Partners (BMCP), a leading next-generation investment bank specializing in digital and tokenized assets, announced a strategic partnership agreement with Eolas Capital. This collaboration marks a significant milestone for BMCP, as it paves the way for expansion into the North American market, allowing BMCP to broaden its reach and capabilities. More here. 

Prove AI, formerly Casper Labs,a secure store for managing AI data, launches on the Hedera Network, bringing new standard in AI governance. Prove AI is focused on enabling enterprises to responsibly and compliantly scale AI technologies by maintaining visibility into and control over the data that trains AI systems. More here.