Crypto, blockchain and Web3

There’s a lot of hype and confusion about Web3. Not at KPMG.

The promise of Web3 is rapidly gaining momentum. But the pieces aren’t just falling into place; we’re busy helping to create and assemble them.

Web 3 continues the evolution of the internet, from its beginnings as a largely static, one-way exchange of information, to the dynamic, interactive and personalized experiences of Web2, where a few centralized content providers have amassed fortunes by monetizing their users’ content and personal information.

Web3 has the ability to decentralize the web and put users back in control of their own personal information and other assets. It’s built on technologies including blockchain, cryptoassets, non-fungible tokens (NFTs) and smart contracts. It plays nicely with the Metaverse powered by augmented reality/virtual reality (AR/VR). It enables the secure and seamless movement of data and assets across systems and experiences and replaces trust with certainty.

More importantly, it enables new and innovative business and operating models that almost any industry can take advantage of — not sometime in the future but starting now. Designer handbags, for example, are sold today along with NFTs designed to combat counterfeits. Video games now allow users to monetize content they create. Its potential to reshape everything from medical records to insurance products can’t be overstated.

This is perhaps nowhere more evident today than the impact cryptocurrency is having on financial services.

Step into the future of assets — today

Blockchain-based cryptoassets aren’t some emerging future concept — they’re already here.

Industry disruption is here today, too. New crypto-native companies are reimagining digital banking even as traditional institutions are launching new products and services designed to attract the business of customers who as a whole are transacting billions of dollars of digital currency every day.

Cryptoasset products are underpinned by a complex and novel infrastructure, with blockchain at its core. Surrounding the technology is an equally complex web of regulatory requirements, and the security requirements are almost unimaginably large. Massive scalability must be built-in from day one. And for added fun, these new systems must integrate with existing traditional data systems.

It’s not a job for the faint of heart

Given the stakes — from anti-money laundering (AML) compliance to cyber security — it’s easy to see why developing solutions that involve crypto and other Web3 transactions absolutely demand the right combination of industry- and domain-specific knowledge and technology-specific skills.

Traceability at scale, for example, requires automation of risk management and controls — not a typical technology skill you’ll find at most engineering-first firms.

That’s why leading institutions turn to us. We bring a diverse team of highly skilled professionals to every project, including crypto specialists, cyber security professionals, technology architects, data scientists and more — even our Tax and Audit professionals play an essential role in delivering an approach designed to check all the boxes.

Complexity, meet simplicity

There’s an old joke that goes, "the nice thing about standards is that there are so many to choose from." This is especially true in the world of blockchain-powered cryptoassets. The diversity of protocols can make developing solutions that must work across various platforms challenging and time consuming. But because Speed to Modern Technology is our commitment, our blockchain and crypto technology specialists developed a suite of accelerators designed to meet the challenge head-on: Chain Fusion® by KPMG.

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Chain Fusion® by KPMG

Chain Fusion® by KPMG is our patented suite of advanced crypto accelerators designed to speed your adoption of trusted cryptoasset capabilities by ingesting and structuring data from different blockchain protocols and more traditional systems. It then creates a single, consistent data architecture that enables thorough interactions across blockchains, your existing systems and other external data sources.

Its consistent data architecture also enables advanced analytics across modules for key use cases, including custody or “wallets,” proof of reserves (asset position reconciliation) and AML transaction monitoring. And it opens the door for analytics that extends across key enterprise functions, including security, finance, risk management, compliance and audit.

Chain Fusion has been shown to cut development cycles in half, and we’ve tested it with our clients in financial services and consumer electronics. Instead of promises and lots of handwaving, we’re happy to show you it in action. Just ask us.

Investors remain bullish on the metaverse

The majority of venture capital and institutional investors plan to increase their metaverse investments over the next five years, according to a new survey from KPMG LLP. Over 90 percent of investors predict the metaverse is the next phase of the internet and envision a future in which it is increasingly utilized for work meetings, trainings and learning experiences.

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Contact us

Accelerating business transformation requires speed of insights and deep expertise.

Our professionals immerse themselves in your organization, applying industry knowledge, powerful solutions and innovative technology to deliver sustainable results. Whether it’s helping you lead an ESG integration, risk mitigation or digital transformation, KPMG creates tailored data-driven solutions that help you deliver value, drive innovation and build stakeholder trust.

Cliff Justice
National Leader of Enterprise Innovation
+1 713 319 2781

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.