In a report published by Venture Capital firm CV VC, in partnership with PwC’s Strategy & IT on July 30, 2019, the current state of Swiss Crypto Valley is deeply analyzed. The investigation features market size, geographical hotspots, regulatory benefit as well as employment growth, unicorns, and new innovative services.
The Silicon Valley of Decentralized Technologies
Crypto Valley in Switzerland is the hub for crypto technologies modeled on the Silicon Valley example. It finds its center in the town of Zug, in the Greater Zurich area, and comprises of a fertile environment that promotes relationships between startups and authorities in order to attract talents and entrepreneurs, help them set up their operations and develop an ecosystem of professional service providers while driving the development of a friendly regulatory environment.
The project, launched around July 2013, is now considered one of the world’s leading ecosystems for crypto, blockchain, and distributed ledger technologies in general, with hundreds of companies doing business inside this unique crypto hub and thriving from its network effects and friendly regulatory framework.
2019 H1 Results
According to the investigation of the top 50 blockchain companies in Crypto Valley made by CV VC and PwC, we can clearly see that, despite the 2018 bear market, the optimism regarding the future of the sector is still quite high.
Indeed, the top 50 blockchain companies based in Crypto Valley doubled their valuations during the first six months of 2019, starting from around $20 billion, they are now worth up to $40 billion, with six unicorns valued over $1 billion each.
Among these unicorns, we find three of the biggest protocol projects on earth: The Ethereum Foundation, Cardano and Dfinity Foundation, followed by other popular crypto projects such as Cosmos Network (an Interchain Foundation) and Polkadot (a Web3 foundation). Last Crypto Valley’s unicorn is the mining giant Bitmain.
Crypto Valley has developed significantly not only in monetary value but also in terms of size. The ecosystem is now home for more than 800 companies counting over 4000 employees.
CV VC’s research also shows six areas that account for more than 50 percent of all registered companies: Zug, Zurich, Geneva, Ticino, Liechtenstein, and Vaud.
Crypto Valley is constantly delivering new innovative services that offer unique quality solutions that are hardly replicable anywhere else in the world. Newly funded crypto banks are employing new talents as we have never seen before. They are embracing experienced bankers that bring specialist knowledge to the newly regulated players who have been granted a license by the Swiss Financial Market Supervisory Authority FINMA. The phenomenon shows increasing maturity in the traditional banking sector.
The increasing adoption of digital currencies has also led to new business opportunities in the crypto asset custody sector. Crypto Valley is in fact home for many prominent crypto custodians’ such as Bitcoin Suisse (Swiss Crypto Vault), Crypto Finance (Crypto Storage) and Taurus Group (Taurus Protect).
The overall scenario presented by the report is very solid and leaves Crypto Valley with very optimistic presupposition for the next years. With regulatory framework becoming better and better, the market size will probably increase and drive employment as well. The Crypto Valley is for sure succeeding in building a crypto-friendly environment able to attract foreign entrepreneurs and professional into a unique forward-looking ecosystem.