Major finance and tech firms are pouring money into startups building technology to develop the crypto market, even though they're steering clear of the volatile currencies themselves.
Venture capital investments in crypto and blockchain startups that included funds from corporates have raced to $850 million so far this year, data compiled by PitchBook for Reuters shows.
The 13 deals put the flows on track for a second straight annual record. Such bets, by companies including London Stock Exchange Group and Microsoft Corp, spiked over five-fold to a record $2.4 billion over 117 investments in 2018.
This suggests large companies see promise in the nascent technology, even as it struggles for acceptance. They have mostly given digital coins a wide berth, avoiding direct investment because of worries over tightening regulation.