Hunter Horsley, CEO of Bitwise, anticipates that big tech companies will compete directly with big banks, as all companies converge to offer a comprehensive suite of financial services as part of their particular platforms. Crypto tech, through stablecoins and tokenization, will become a key enabler for this future.
Bitwise: Cryptocurrency Will Let Big Tech Compete With Big Banks
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Bitwise Anticipates Cryptocurrency Will Upset the Financial Market as Big Tech Goes Against Banks
The financial services market is on the verge of a significant shift, as incumbents will soon face competition from new actors in the industry. Hunter Horsley, CEO of Bitwise, a crypto-native firm that handles billions in assets under management, has predicted that this shift will pit the largest tech companies in the world against banking behemoths, seeking to attract user funds.
“Meta, Google, Apple, etc, are going to compete with banks,” Horsley stated on social media, highlighting the convergence of software companies and finance, powered by cryptocurrency rails.
The key enablers of this new phase in the financial services arena will be stablecoins, which will empower these companies to compete with JPMorgan Chase, Bank of America, and Citibank.
“Through stablecoins, you’ll be able to have deposits with interest with them,” Horsley asseverated. Each of these companies will be able to launch its own stablecoin, allowing the distribution of U.S. treasury-derived revenue to its customers, even with the current GENIUS Act guardrails put in place.
“Through tokenization, you’ll be able to trade crypto and securities with them,” Horsley stated. Investment services are also an important part of a bank’s service offering, and tech companies will also be able to compete due to the existence of tokenization.
“Tech cos have experimented with financial services before. Crypto is making it newly possible. Software is eating the world. The financial system is next,” he concluded.
Nonetheless, Horsley believes this will be a slow process, as big tech will start launching wallet services and will move forward with a broader service offering as crypto rails become more generalized across the industry.
