Institutions Build Blockchain Infrastructure, Marking Crypto's Maturation

The cryptocurrency and blockchain ecosystem is witnessing a surge in institutional interest, driven by recent developments in venture capital funding, exchange-traded fund (ETF) activity, and strategic acquisitions. In an exclusive interview with Bloomberg, Cosmos Labs CEO Magnus Mareneck highlighted how these trends are reshaping the landscape for Layer 1 (L1) blockchain networks and institutional adoption.

Mareneck emphasized that the rapid growth of crypto VC funding—exemplified by Coinbase's $375 million acquisition of on-chain investment platform Echo, according to a crypto.news report—signals a maturing market. "Institutions are no longer just experimenting; they're building infrastructure," he said. "The recent $587 million in crypto VC funding across 22 projects this week underscores confidence in blockchain's long-term potential, even amid broader market volatility."

This momentum is echoed in institutional onboarding efforts. BlackRock, the world's largest asset manager, added $72.5 million in Ethereum, CryptoBriefing reported, and $65 million in Bitcoin, TradingView reported, to its regulated crypto offerings through its spot ETFs. Mareneck noted that such moves by traditional finance giants are critical for mainstream adoption. "When BlackRock is buying Ethereum, it sends a clear signal: crypto is transitioning from speculative assets to foundational infrastructure," he said.

The CEO also pointed to rising institutional engagement in decentralized finance (DeFi) and tokenization. "L1 chains like Cosmos are uniquely positioned to support this shift," Mareneck explained, citing the platform's interoperability features. He highlighted recent partnerships between Cosmos-based projects and traditional financial institutions, which are leveraging blockchain for programmable banking and real-time settlement, Yahoo Finance reported.

However, Mareneck acknowledged challenges, including regulatory uncertainty and valuation concerns. He referenced the case of SEALSQ, a quantum security firm trading at a 10.1x price-to-book ratio—well above its industry peers—as an example of market optimism outpacing tangible results, Simply Wall St noted. "High valuations require sustainable fundamentals," he cautioned. "For L1s, that means proving scalability and real-world utility."

Institutional adoption, Mareneck stressed, will hinge on bridging the gap between traditional finance and blockchain innovation. "The next phase isn't just about building better chains—it's about building trust," he said. "When Wall Street starts treating crypto as a core asset class, we'll see true institutional adoption."