The blockchain technology sector is maturing. Here’s a look at 10 of the largest US and Canadian blockchain technology stocks by market cap.
The blockchain technology sector has experienced notable growth over the past few years. Although 2022 has been a turbulent year for the market, investors are beginning to learn to live with the volatility of blockchain technology stocks.
As Boston Consulting Group’s Zia Yusuf notes in Barron’s, “The combination of blockchain, the internet of things (IoT) and artificial intelligence (AI) for optimizing supply chains is profoundly exciting." Using these emerging technologies in industries with thin margins and complex supply chain needs could make a big difference for logistics.
Similarly, in its Global Blockchain Survey, professional services network Deloitte states that 93 percent of the companies surveyed believe “there is a compelling business case for the use of blockchain, digital assets, and/or cryptocurrencies.” Additionally, 93 percent think these technologies will create new revenue streams.
Investing in blockchain technology stocks
As blockchain technology matures, there will be many opportunities for investors. Along with blockchain exchange-traded funds and other avenues, blockchain technology companies are a means of gaining exposure to this segment of the tech market.
US blockchain stocks
Below are five of the largest US blockchain technology stocks by market cap on the NASDAQ and NYSE for investors to consider. Market cap figures were current as of September 13, 2022.
Market cap: US$110.88 billion
PayPal has led the charge in the digital payment revolution for more than two decades. The fintech company’s platform is used by more than 425 million consumers and merchants across over 200 markets globally.
In 2021, PayPal launched new services that enable its US- and UK-based customers to buy, hold and sell four types of cryptocurrency (Bitcoin, Ethereum, Litecoin and Bitcoin Cash) through its platform. These cryptocurrencies can now be used alongside other payment methods in the PayPal wallet to make purchases. In the US, the company has introduced crypto services on its mobile payment service Venmo. PayPal is also looking into partnerships with licensed and regulated cryptocurrency platforms and with central banks. The company has joined Coinbase's (NASDAQ:COIN) TRUST Network as it seeks to strengthen its regulatory compliance.
Market cap: US$81.4 billion
Established in 1981, Infosys is an Indian multinational information technology (IT) services company recognized as a global leader in next-generation digital services and business consulting. The company is actively working to bring about enterprise-wide adoption of blockchain-backed business networks across industries.
Infosys says it has “created well-defined IP based products, service-enabled solutions and solution accelerators in the four high-impact areas — financial services, insurance, supply chains, and government services. These tools are designed to help clients test business models and are not just limited to testing technology.”
Market cap: US$68.376billion
Fintech company Fiserv is helping financial institutions transition from physical and manual processing to digital banking solutions. Its clients span the financial sector, including card issuer processing and network services, payments, e-commerce and merchant acquiring and processing. One of Fiserv’s most recognized products is the Clover cloud-based point-of-sale (POS) solution. The company also helps accelerate fintech startups.
In February 2022, Fiserv announced a partnership with ZA Bank, the first virtual bank to launch a pilot trial in Hong Kong. The bank will use Fiserv’s VisionPLUS global payment software, “which supports the entire card payment lifecycle, including origination, card issuance, authorization, settlement and customer service.”
Market cap: US$48.9 billion
VMWare is a data and security solutions company. Its security products include NSX, NSX Cloud, AppDefense and vRealize Network Insight. These tools allow companies to manage multiple clouds and on-premise infrastructure via one dashboard. VMWare has partnerships with major businesses such as Amazon Web Services, Microsoft Azure, Google Cloud and Dell Technologies (NYSE:DELL).
The company has also developed an enterprise-grade blockchain platform known as VMware Blockchain that enables multi-party workflows. The platform integrates smart contract languages, allowing application developers to access all features, including familiar interfaces such as the DAML Ledger API.
Market cap: US$41.38 billion
San Francisco-based Block, formerly Square, is a financial services and digital payment company that provides mobile payment solutions such as POS software. Co-founder and CEO Jack Dorsey renamed the company in an effort to emphasize its focus on blockchain technology, including cryptocurrencies like Bitcoin.
In early 2022, Block announced it would become a Bitcoin miner and aim to make mining more distributed and efficient. This includes making new and more accessible application-specific integrated circuits, the main computerized devices used to mine Bitcoin.
“Bitcoin mining should be as easy as plugging a rig into a power source. There isn’t enough incentive today for individuals to overcome the complexity of running a miner for themselves," according to Dorsey.
Canadian blockchain stocks
Below are five of the largest Canadian blockchain technology stocks by market cap on the TSX for investors to consider. Market cap figures were current as of September 13, 2022.
Market cap: C$57.94 billion
Shopify has grown a proprietary global e-commerce platform for online stores and retail POS systems. Its system involves subscription-based software that allows users to launch, build and manage their own online sales. The Ottawa-based company's platform also allows users to develop marketplaces for non-fungible tokens (NFTs). In July 2021, the NBA’s Chicago Bulls launched an online store on Shopify to sell the sports association’s first-ever NFTs, including digital artwork of NBA championship rings.
This summer, Shopify participated in the US$24 million Series A funding round for startup Thirdweb, which has created a development toolkit for building and launching Web3 products such as blockchain games, NFTs and marketplaces.
Market cap: C$25.21 billion
CGI is one of the world’s largest IT systems integration and business consulting firms in the world. It bills itself as “one of the few end-to-end consulting firms with the scale, reach, capabilities and commitment to meet clients' enterprise digital transformation needs.”
In terms of blockchain, CGI helps clients use the technology to build future-ready, secure and efficient enterprise networks. The Bank of Montreal (TSX:BMO,NYSE:BMO), Royal Bank of Canada (TSX:RY,NYSE:RY), Mitsubishi UFJ Financial Group (NYSE:MUFG,TSE:8306) and National Bank of Canada (TSX:NA,OTC Pink:NTIOF) have all partnered with CGI to integrate its software-as-a-service Trade360 with Skuchain’s blockchain platform to replace the traditionally complex and paper-intensive nature of trade finance.
Market cap: C$10.95 billion
OpenText is a global leader in enterprise information management, and provides a cloud integration platform for digital supply chains and business ecosystems. The company’s customers include some of the world's largest enterprises in the manufacturing, retail, consumer goods and financial services industries.
OpenText’s platform integrates IoT, AI and blockchain technologies to build autonomous, intelligent and connected supply chains. According to the company, “OpenText technology can enable you to build the digital backbone needed for B2A integration that includes IoT data, as well as AI/ML predictive analytics, and will eventually enable you to integrate blockchain technology through its business partners.” OpenText is a member of the Blockchain in Transport Alliance, the largest commercial blockchain alliance in the world, with nearly 300 members primarily from the freight, transportation and logistics industries.
Market cap: C$6.08 billion
Electronic payment processor Nuvei offers online, mobile and in-store payment solutions and consulting to brands in local and global markets. Its proprietary platform provides seamless pay-in and pay-out capabilities to help businesses “remove payment barriers, optimize operating costs and increase acceptance rates.” Nuvei’s platform supports nearly 150 currencies and 40 cryptocurrencies.
In late 2021, through its subsidiary Simplex, Nuvei announced the rollout of branded Visa (NYSE:V) debit cards to its partners across Europe and the UK, following a partnership with Visa. In mid-2022, the company launched a partnership with Bibox, the world's first AI-driven digital asset trading platform, which will allow for easier access to more than 145 cryptocurrencies.
Market cap: C$3.99 billion
POS and ecommerce software provider Lightspeed Commerce offers a one-stop cloud-based POS system for small- and medium-sized businesses in more than 100 countries.
The platform helps restaurants and retailers manage inventory, view customer data and analyze multi-channel sales data within one system. One way it does this is by integrating an electronic POS system with proprietary blockchain technology; this help restaurateurs ensure compliance with tax regulations, while reducing the complexity of billing and supply chain management.
What should everyone know about Bitcoin?
Bitcoin and other cryptocurrencies are prone to volatile swings, which may lead to major monetary gains as well as catastrophic losses. But does that mean crypto is a bad investment? Each investor needs to make their own decisions.
Will we only have digital currencies in the future?
While central banks around the world are considering how to integrate regulated digital currencies into the current financial system, cryptocurrencies are still inherently vulnerable to instability. Crypto will not replace cash anytime soon.
Why do blockchain coins and stocks fall at the same time?
Those invested in crypto coins are often also invested in stocks. When investors lose confidence in one area of the market, they tend to lose confidence in others. Blockchain-focused stocks will be especially vulnerable to large drops in cryptocurrency prices.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.