When we talk about 'institutions' in traditional finance, we typically mean banks, pension funds, insurers, and asset managers. Web3 has expanded this definition, and the very idea of what can be described as an institution is shifting.

Institutional adoption now includes everyone from government agencies piloting central bank digital currencies, to charities introducing stablecoin payments, or tech platforms like Telegram integrating crypto for their billion-plus users. With 71% of institutional investors investing in digital assets, and institutional crypto investments reaching $21.6 billion in Q1 2025 alone, what it means to be an 'institution' has shifted significantly.

Understanding what institutions are, and how they differ, will help anyone building in the Web3 space to build a framework to identify the right partners and design appropriate mass market products.

Who Counts as an Institution in Web3?

A Web3 institution is a regulated, structured organization strategically involved in blockchain technology.

A Web3 institution is a large, organised entity, such as a bank, fund, DAO, or exchange, that plays a systematic role in blockchain ecosystems. They tend to be regulated, and can also include both traditional financial players adopting digital assets and native crypto organizations.

These entities that are scaling blockchain activity, and accelerating the technology's adoption and integration into larger systems, can be split into six main categories.

Traditional Financial Institutions

Banks, asset managers, and hedge funds are acquiring digital assets and creating blockchain-based solutions while maintaining their role as trusted financial intermediaries. JPMorgan's Kinexys blockchain platform processes over $1.5 trillion in transactions for cross-border settlements, while nearly 50% of banks worldwide now use stablecoins for payments.

Major asset managers like BlackRock and Fidelity manage diversified crypto portfolios as part of their standard offerings, moving digital assets from alternative investments to mainstream portfolio components.

Fintech Companies and Neobanks

Due to their enhanced flexibility and highly innovative product development processes, Fintechs can more easily experiment with new Web3 protocols and services. These platforms often serve as testing grounds for new features in consumer applications, like Revolut offering in-app crypto trading, which eventually receive broader institutional adoption.

Exchanges and Custodial Services

Crypto custodians provide secure storage solutions and expert asset management services, enabling regulated institutional investors to operate with the level of compliance and security that they require. Major players, like Coinbase, and Kraken, serve as a technical bridge between traditional finance infrastructure and digital asset markets by providing dedicated institutional support and seamlessly integrating sophisticated services, including staking and governance participation, with existing financial systems.

Infrastructure and Service Providers

Behind-the-scenes companies provide the technical foundations necessary for other institutions and regular users to safely participate in Web3. These providers offer everything from blockchain development platforms to security audits and regulatory tools, allowing institutions to focus on their core business while benefitting from Web3 products and services. Firms like IBM have built dedicated solutions (IBM Blockchain) that provide advanced technical infrastructure that many individual institutions cannot build internally.

Government Bodies and NGOs

The public sector's increasing exploration and integration of Web3 solutions represents a significant validation of blockchain-based technology. 134 countries, representing 98% of global GDP, are exploring or developing CBDCs, while new legislations that provide clarity are continuing to be enacted (read more about the Genius Act here).

NGOs are also leveraging blockchain technology to increase transparency and efficiency, with The World Food Programme piloting the use of blockchain-based platforms for refugee cash transfers, and other organizations exploring how the technology can be used for improving supply chain tracking and aid distribution.

Technology and Messaging Platforms

Large-scale social platforms are embedding crypto infrastructure directly into their existing platforms, blending it seamlessly into the user experience. Telegram's Web3 ecosystem, powered by TON Blockchain, has a wide range of financial, social, and gaming solutions, including an integrated wallet for seamlessly transferring cryptocurrencies, as well as NFT stores, and tokenised digital identities.

These platforms are leveraging their large existing user bases to seamlessly provide non-native users with access to Web3 products and services, without requiring separate applications or complex onboarding processes.

Why Clear Definitions Matter

Referring to all of these diverse institutions using one umbrella term can create confusion and overlook the distinct approaches that each type of institution takes to Web3 adoption. A stronger recognition of how the objectives and goals of these groups differ enables more effective ecosystem development across three key areas:

For Developers and Builders

Understanding institutional differences helps developers identify the appropriate partners and design solutions that meet their specific requirements. A fintech building consumer payment applications has different needs to a bank implementing treasury management systems, or a government deploying humanitarian aid distribution networks.

The technical requirements and user experience expectations vary significantly across the types of institution, requiring tailored approaches to development, rather than one-size-fits-all solutions aimed at serving the broad audience of 'institutions'.

For Protocols and Infrastructure Providers

Layer 1 blockchains and service providers must position themselves correctly for their target institutional markets. TON's integration with Telegram's billion-user ecosystem requires different technical capabilities and go-to-market strategies to enterprise blockchain solutions focused on supporting supply chain management, for instance.

Understanding institutional diversity allows protocols to develop appropriate features, partnerships, and messaging for each segment rather than attempting to serve multiple conflicting markets identically.

For Policymakers and Market Analysts

Regulatory frameworks and market analysis become more effective when recognizing institutional diversity. While fintechs move rapidly to deliver innovative products and capture first-mover advantage, traditional banks cautiously approach Web3, and government adoption often requires multi-year rollouts characterised by pilot tests and policy debates. These different timelines and priorities require nuanced policy approaches aimed at supporting the growth of specific use cases, rather than broad regulatory frameworks which could boost some sectors whilst offering others little (or even adverse) support.

Institutional Approaches and Timelines

The diversity of Web3 institutions becomes most apparent when examining how each category approaches adoption and implementation timelines.

Traditional Banks prioritize efficiency, regulatory compliance, and the tokenization of existing financial assets. They move incrementally through carefully controlled pilot programs before full-scale deployment. This approach reflects their role as systemically important institutions with strict regulatory oversight.

Fintech Companies pursue rapid innovation and user growth through new Web3-powered services including stablecoin payments and asset tokenization. Their agility allows them to experiment with the latest solutions and emerging protocols while traditional banks remain in extended pilot phases.

Government Bodies approach Web3 to strengthen national competitiveness and optimize public service delivery. They operate with the lowest tolerance for risk, requiring extensive consultation, testing, and legal reviews before considering implementation. However, successful government pilots often create regulatory clarity that accelerates private sector adoption.

Technology Platforms leverage existing user relationships and technical infrastructure to integrate crypto features into familiar experiences. This approach can enable them to rapidly achieve large scale adoption, but requires balancing innovation with ensuring user safety and regulatory compliance across multiple distinct jurisdictions.

A Broader Shift is Underway

The future of TON's adoption depends not on any single institutional category, but on the ecosystem's ability to serve this diverse landscape of institutions. Whether that's the varied needs of banks seeking compliance, fintechs pursuing innovation, governments requiring accountability, or tech platforms enabling mass user adoption. TON's integration with Telegram is already providing an unrivaled bridge between consumer-facing applications and institutional infrastructure requirements.

As the space matures, TON Foundation is committed to supporting the growth of an ecosystem which builds with this diversity in mind, offering the speed, scalability, and usability needed to support applications across traditional finance, fintech innovation, government services, and consumer technology platforms.

Future blogs in this series will dive deeper into why these institutions are coming to Web3, what they need to succeed, and how platforms like TON are enabling them to thrive.