Fintech Blockchain Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 4.66 Billion |
| Market Size (2029) | USD 31.84 Billion |
| CAGR (2024 - 2029) | 46.92 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Fintech Blockchain Market Analysis
The Fintech Blockchain Market size is estimated at USD 4.66 billion in 2024, and is expected to reach USD 31.84 billion by 2029, growing at a CAGR of 46.92% during the forecast period (2024-2029).
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 financial industry's digital transformation 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 growth. Many fintech organizations have also started adopting blockchain technology to simplify business procedures, reduce fraudulent activity, and enhance customer service quality. 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.
Increased operational efficiency, faster transactions, enhanced security, compliance benefits, infrastructure cost savings, improved cross-border transactions, financial inclusion, and increased competition and innovation drive the reduced total cost of ownership in the fintech blockchain market.
Various organizations are adopting blockchain in trade and finance systems to build smart contracts between participants, increase efficiency and transparency, and offer newer revenue opportunities. Blockchain's identical recording capabilities make the existing clearing and settlement process redundant. Banks and other financial institutions are adopting blockchain-enabled IDs to identify people. Improved results are from organizations' capacity to foresee emerging trends in financial blockchain applications and develop blockchain functionality.
The lack of clear and consistent regulatory standards makes it difficult for fintech blockchain companies to ensure compliance with various legal companies' work to navigate the evolving regulatory landscape.
The COVID-19 pandemic negatively impacted many industries globally, including blockchain-related fintech industries. 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 impact this market significantly. Despite the challenges, the fintech blockchain market is expected to continue its growth.
Fintech Blockchain Market Trends
Insurance Segment to be the Largest End-user Vertical
- Blockchain technology is revolutionizing the insurance industry by transforming operations and providing various benefits, such as cost reduction, enhanced customer experiences, increased efficiency, greater transparency, and more. This represents a significant opportunity for fintech companies and insurance providers ready to embrace this transformation.
- One of the critical 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. According to Swiss Re, in 2023, countries like the United States and Denmark ranked with an index score of 1 in insurance penetration.
- Furthermore, with the rise of 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.
- The cloud-based fintech blockchain services are expected to become more secure, thus enabling enterprises to respond faster to security threats, focus on mitigating business risks, become compliant, and save on-premise infrastructure investment. For multiple large enterprises with highly regulated IT infrastructure, the decision to house their software and services on-premise has been clear. The solutions deployed on these in-house servers are also more accessible and under the company's direct control, which provides reliability compared to cloud servers.
- As companies expand over time, it becomes necessary for them to scale their solutions to support crucial business operations. However, it is sometimes difficult for multiple companies to manipulate the existing on-premises solutions to support newer applications, integrations, and updates.
North America is Expected to Witness Significant Growth
- Due to the multiple benefits of blockchain technology, the financial industry, which includes banking, financial services, and insurance, is focused on it. For example, major banks in the United States are investing in blockchain technology, including JPMorgan and Bank of America.
- The insurance industry is involved in various activities, including sharing data that is modified or updated by multiple parties. As a result, blockchain technology can benefit the insurance industry. As early technological adaptors, North Americans have significantly embraced blockchain in the insurance industry.
- Smart contracts allow blockchain users to transfer anything of value transparently without the intervention of a middleman. Smart contracts, like physical contracts, define the rules between two parties. Unlike traditional contracts, smart contracts can track insurance claims and hold both parties accountable.
- The COVID-19 outbreak accelerated the demand for digital transformation in the banking industry. 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. Digital customer experience is the primary area of competitive advantage and is likely to drive the market in the future.
- 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 build trust between financial institutions and their customers.
Fintech Blockchain Industry Overview
The fintech blockchain market is highly fragmented, with the presence of major players like AlphaPoint Corporation, Bitfury Group Limited, Oracle Corporation, Amazon Web Services Inc., and Digital Asset Holdings LLC. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- In October 2023, Cponcover, a blockchain protection company, and AlphaPoint, one of the global financial technology companies providing digital asset infrastructure, partnered to offer an additional layer of protection for AlphaPoint's customers. The partnership is expected to allow AlphaPoint clients to access Coincover's leading asset protection technology, enabling them to mitigate security risks such as hacking, human error, and scams simply and effectively. AlphaPoint's end users will be provided with increased security, increasing the company's credibility as a safety-conscious exchange when security is its customers' top priority.
- In July 2023, cross-chain protocol Axelar and tech giant Microsoft announced a collaboration to bridge public and private blockchains. The partnership would see Axelar joining Microsoft's Azure marketplace, becoming the first cross-chain protocol listed on the developer's online store.
Fintech Blockchain Market Leaders
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AlphaPoint Corporation
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Bitfury Group Limited
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Oracle Corporation
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Amazon Web Services, Inc.
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Digital Asset Holdings LLC
*Disclaimer: Major Players sorted in no particular order
Fintech Blockchain Market News
- April 2024 - Global Digital Finance (GDF), a prominent global association and platform driving innovation in digital assets within financial services, has unveiled a strategic collaboration with FINTECH.TV is one of the leading global media outlets focusing on finance, blockchain, technology, and sustainability. This partnership aims to expand their reach, moving beyond their traditional bases in New York and London to explore new markets in Europe, the Middle East, APAC, and the growing landscapes of Sub-Saharan Africa and Latin America.
- October 2023 - Ankr and XDC Network forged a pivotal partnership. XDC, a layer 1 blockchain platform specializing in trade finance and asset tokenization, would benefit from Ankr's remote procedure calls (RPC) service. This collaboration was expected to bolster XDC's performance, security, and scalability. RPC, a pivotal protocol, facilitates cross-network communication for applications. Ankr's RPC service, renowned for its reliability and cost-efficiency, empowers developers and users to tap into various blockchain networks, including Ethereum, Binance Smart Chain, Polygon, and Solana. Ankr's RPC service caters to Web3 applications like wallets, exchanges, and DApps, ensuring swift and seamless blockchain data interactions.
Fintech Blockchain Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising R&D Activities for Transformative and Highly Intelligent Programmable Blockchain Platform
5.1.2 Increasing Adoption of Blockchain Technology for Applications in Banking Industry, such as Payments and Smart Contracts
5.1.3 Reduced Total Cost of Ownership
5.2 Market Challenges
5.2.1 Uncertain Regulatory Standards and Frameworks
5.3 Market Opportunities
6. MARKET SEGMENTATION
6.1 By Provider
6.1.1 Middleware Providers
6.1.2 Application and Solution Providers
6.1.3 Infrastructure and Protocol Providers
6.2 By Application
6.2.1 Payments, Clearing, and Settlement
6.2.2 Exchanges and Remittance
6.2.3 Smart Contract
6.2.4 Identity Management
6.2.5 Compliance Management/ KYC
6.2.6 Other Applications
6.3 By Organization Size
6.3.1 Large Enterprises
6.3.2 Small and Medium-sized Enterprises
6.4 By End-user Verticals
6.4.1 Banking
6.4.2 Non-banking Financial Services
6.4.3 Insurance
6.5 By Geography***
6.5.1 North America
6.5.1.1 United States
6.5.1.2 Canada
6.5.2 Europe
6.5.2.1 Germany
6.5.2.2 United Kingdom
6.5.2.3 France
6.5.3 Asia
6.5.3.1 China
6.5.3.2 India
6.5.3.3 Japan
6.5.4 Australia and New Zealand
6.5.5 Latin America
6.5.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Vendor Market Share
7.2 Mergers and Acquisitions
7.3 Company Profiles*
7.3.1 AlphaPoint Corporation
7.3.2 Bitfury Group Limited
7.3.3 Oracle Corporation
7.3.4 Amazon Web Services Inc.
7.3.5 Digital Asset Holdings LLC
7.3.6 Cambridge Blockchain LLC
7.3.7 Circle Internet Financial Limited
7.3.8 Coinbase Inc.
7.3.9 Accenture PLC
7.3.10 Earthport Plc
7.3.11 Factom Inc.
7.3.12 GuardTime AS
7.3.13 IBM Corporation
7.3.14 Microsoft Corporation
7.3.15 RecordesKeeper
7.3.16 Ripple Lab Inc.
8. FUTURE OUTLOOK OF THE MARKET
Fintech Blockchain Industry Segmentation
Blockchain technology is a decentralized ledger of all transactions across a peer-to-peer network. Through this technology, participants or users can confirm transactions without the need for a central clearing authority. Most of the potential applications include fund transfers, settling trades, voting, and many other issues.
The fintech blockchain market is segmented by provider (middleware providers, application and solution providers, and infrastructure and protocol providers), application (payments, clearing, and settlement, exchanges, and remittance, smart contract, identity management, compliance management/KYC, and other applications), organization size (large enterprises and small and medium-sized enterprises), end-user verticals (banking, non-banking financial services, and insurance), and geography (North America [United States and Canada], Europe [Germany, United Kingdom, France, and Rest of Europe], Asia-Pacific [China, India, Japan, and Rest of Asia Pacific], Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Provider | |
| Middleware Providers | |
| Application and Solution Providers | |
| Infrastructure and Protocol Providers |
| By Application | |
| Payments, Clearing, and Settlement | |
| Exchanges and Remittance | |
| Smart Contract | |
| Identity Management | |
| Compliance Management/ KYC | |
| Other Applications |
| By Organization Size | |
| Large Enterprises | |
| Small and Medium-sized Enterprises |
| By End-user Verticals | |
| Banking | |
| Non-banking Financial Services | |
| Insurance |
| By Geography*** | |||||
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| Australia and New Zealand | |||||
| Latin America | |||||
| Middle East and Africa |
Fintech Blockchain Market Research FAQs
How big is the Fintech Blockchain Market?
The Fintech Blockchain Market size is expected to reach USD 4.66 billion in 2024 and grow at a CAGR of 46.92% to reach USD 31.84 billion by 2029.
What is the current Fintech Blockchain Market size?
In 2024, the Fintech Blockchain Market size is expected to reach USD 4.66 billion.
Who are the key players in Fintech Blockchain Market?
AlphaPoint Corporation, Bitfury Group Limited, Oracle Corporation, Amazon Web Services, Inc. and Digital Asset Holdings LLC are the major companies operating in the Fintech Blockchain Market.
Which is the fastest growing region in Fintech Blockchain Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Fintech Blockchain Market?
In 2024, the Asia Pacific accounts for the largest market share in Fintech Blockchain Market.
What years does this Fintech Blockchain Market cover, and what was the market size in 2023?
In 2023, the Fintech Blockchain Market size was estimated at USD 2.47 billion. The report covers the Fintech Blockchain Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Fintech Blockchain Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Blockchain in Fintech Industry Report
Statistics for the 2024 Blockchain in Fintech market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Blockchain in Fintech analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
