The cryptocurrency industry was in turmoil throughout 2022, but that will lead to more stable companies in 2023, accoridng to Circle (CRYPTO: USDC) chief strategy officer Dante Disparte.

Disparte, who is also Circle's head of global policy, says the $2 trillion in losses suffered by the industry have led to a loss of trust in the promise of cryptocurrency (initially seen as a solution to many of the issues that caused the 2008 financial crisis).

The failures documented in 2022 have also validated the concerns of bearish policymakers who warned about the risks associated with cryptocurrency without implementing proper regulations.

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While the underlying technology of cryptography and blockchain has the potential to be used in a variety of industries, it is still being tested in the financial sector and elsewhere.

In order to gauge the staying power of digital assets and blockchain technology in the financial industry, Disparte says it's worth noting what major banks and established financial services firms do rather than what they say.

Major Institutions Adopt Web3

JPMorgan Chase & Co. (NYSE:JPM), and other major companies, have started to adopt Web3 technology.

The adoption of crypto technology by these firms is inevitable, even if the term itself has a negative reputation, Disparte says.

Happy New Year! Following an annus horribilis for #Crypto in 2022, now more than ever demonstrable utility value is the order of the day. Sharing my @wef #WEF23 reflections on what the future holds and how @circle is navigating turbulence. https://t.co/emR4cHNbu3

— Dante Disparte (@ddisparte) January 2, 2023

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