The Crypto Valley keeps growing. CV VC has published the fourth edition of its Crypto Valley Top 50 Report, highlighting the developments in the area in H2 2019.
According to the report, the total number of Crypto Valley-based blockchain companies has grown from 810 to 842 in the second half of 2019. That’s up 92 from 750 in December 2018. Also, the number of jobs has grown from 3,300 in 2019 to 4,400 in December 2019.
Crypto Valley: Local concentration in Zug, Zurich, and Liechtenstein
The report’s definition of “Crypto Valley” includes both Switzerland and Liechtenstein. The ecosystem in Switzerland is bigger in size, with half the registered companies based in the canton Zug.
The other blockchain hotspots are in Zurich (139 companies), Geneva (45), Ticino (42), Vaud (27), Lucerne (16), and Berne (14). The number of companies in Liechtenstein doubled to 80 within the last six months.
Mathias Ruch, founder and CEO of CV VC, says, “Switzerland and Liechtenstein are still attractive hubs, which bring important companies, platforms, and projects to Switzerland.”
Combined valuation dropped due to decline of Ethereum
The valuation of the top 50 blockchain companies in Switzerland and Liechtenstein now amounts to a combined $25.3bn. Although the number of companies has been growing, the combined valuation has been decreasing. The main reason is the decline of the value of Ethereum, the largest stakeholder in the Crypto Valley, in H2 2019, which has almost halved since June.
Looking at the combined valuation excluding Ethereum, the value of CV companies remained almost unchanged at $10.8bn. Ruch comments, “The latest figures from the CV VC Top 50 Report show that Crypto Valley, with its 842 companies, has become more stable and mature.”
Infrastructure keeps developing; first crypto banks launched
The infrastructure in the Crypto Valley has matured as well. The Swiss financial regulator Finma has granted two banking licenses to the first crypto banks SEBA Bank and Sygnum Bank. Two more companies have applied for a banking license, which are expected within 2020.
“The strength of the Swiss Blockchain ecosystem is obvious,” said Daniel Diemers, partner at Strategy& Switzerland. “Not only are crypto brokers and now crypto banks causing a stir, but also large-scale tokenization projects. Added to this is the generally higher level of activity in the area of blockchain, especially among traditional industrial companies in Switzerland.”
Additionally, Liechtenstein’s Blockchain Act has been approved by the parliament last year and put into force beginning January 2020. Switzerland also introduced changes to existing legislation thus strengthening its principles-based approach. Improving regulatory frameworks in the region will attract more crypto and blockchain companies in the months ahead.