Crypto-assets are back, this time for real?

 Early February, Tesla invested $1.5 bn in bitcoin to " further diversify and maximize returns on cash". What makes this decision very unique was hardly noticed despite the event's wide media coverage. Although the 2017 ICOs' schemes already belong to the prehistoric age of cryptos, it remains valid to state that companies mostly considered so far crypto-assets an alternative resource to get funded, away from the banking industry. 

 With Elon Musk's decision, crypto-assets have proven an effective tool, embedded into the financial strategies of corporations, to offer and leverage new opportunities both on the funding and more lately investment sides. We have likely seen only the tip of the iceberg in this field, as sophisticated financial and tech innovation may pop up.

Future developments in crypto-assets may target more precisely the corporate demand and need for tech, flexible, and bespoke non-banking solutions dedicated to B2B trade, corporate finance products and financial engineering. For instance, payments of M&A transactions involving non-cryptos companies might include soon a crypto-asset component, for all or part, potentially combined with cash and equity, to be agreed upon between the acquirer and the seller.

 Cash-rich corporations with tech acumen are aware that some real-life applications of the prevailing crypto-assets start to irrigate the business world, and are fostered by the ongoing massive adoption of cryptos as new payment means for both consumers and companies. The surging role of payment services providers and neo-banks, such as Paypal or Revolut, in the democratization of crypto-assets' use shall not be overlooked. Tesla also said it will start accepting payments in bitcoin in exchange for its products “subject to applicable laws and initially on a limited basis".

 If cryptos do enter our daily lives through payment applications accepted by well-established brands, it might become increasingly difficult for central banks to substantiate that crypto-assets are not currencies or are limited to illicit usage. Let's nevertheless acknowledge that an additional layer of crypto-regulation seems needed to safeguard the interests of end-consumers in various fields. 

 For the record, according to CoinMarketCap, the total number of crypto-assets was 7,812 with a total market cap of $324.7 billion as of 20 Jan 2021, significantly inflating both in number and in value compared to 2020. 

 Odyssey assists tech startups, SMEs, and large corporates in the end-to-end design and execution of strategic, M&A, and capital raising projects.

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