2 minute read 26 Apr 2024
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Finance in the Age of Web3: On the field or sideline?

Authors
Sven Goeggel

Partner, Global Treasury Services | EY Switzerland

Passionately providing clients with a broad array of treasury services, dedicated family man and passionate mountain biker.

Darko Stefanoski

Partner, Law Leader in Financial Services | EY Switzerland

His heart belongs to two places: one is Macedonia, where he has his roots, and the other is Switzerland, where he was born and lives.

Benjamin Banusch

Senior Manager, Disruptive Technologies Lead | EY Switzerland

Experienced Technology Strategy Advisor, supporting organizations to face the opportunities and implications of emerging technologies such as DLT/Crypto Assets and Quantum Computing.

2 minute read 26 Apr 2024
Related topics Assurance Finance Blockchain Digital Technology
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In the world of Web3, the finance function – and treasury in particular – plays a vital role in navigating new revenue streams.

In brief

  • What is the current position of the Finance organization in Switzerland regarding the adoption of Web3 applications within the company?
  • How does the integration of Web3 applications as a new revenue model impact the operations of your Finance department?
  • How should the Finance organization be engaged - on the field or on the sideline?

As Web3 applications increasingly become integrated in our lives, especially among the younger generations, companies are poised to benefit from numerous revenue-generating opportunities. 

  • What is Web3?

    Web3 represents the next evolutionary step of the internet, emphasizing decentralization, blockchain technology, and user empowerment through increased control over data and digital assets.

While CFOs recognize the importance of the finance function – and above all treasury – in managing the next evolutionary phase of the internet, a Swiss market study by EY in cooperation with HSLU found that less than 10% of Swiss corporates feel ready for the Web3 revolution.

Web3 applications, such as tokenization of real-world and virtual assets and decentralized finance, impact the finance function in more ways than might initially be apparent. In the world of Web3, players need to ensure effective management of crypto assets, risk management, assessment of price volatility and timely conversion of cryptocurrencies into fiat currencies and vice versa. A skilled and knowledgeable treasury team can support effective execution of these tasks and also capitalize on Web3 by driving efficiencies and revenues through staking and decentralized exchanges.

Although Web3 offers exciting opportunities, there are also challenges, including storage solutions and regulatory compliance. Organizations must navigate evolving regulatory landscapes and align with authorities like the US Securities and Exchange Commission (SEC) and the Swiss Financial Market Supervisory Authority (FINMA). By adopting a comprehensive and proactive approach to regulatory compliance, organizations can futureproof their organization, capitalize on new revenue streams and minimize legal risks.

Our report showcases key insights from industry peers and practical considerations on how finance departments, especially Treasury, could be involved in corporate Web3 initiatives. Learn more:

How EY can help

Treasury, commodities and finance specialisms

EY teams can help manage risk and volatility in complex areas related to treasury and commodities markets.

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Finance in the Age of Web3

Download the paper and discover how finance experts rethink their roles and become strategic allies for the success of Web3.

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Summary

Currently, Web3 initiatives are predominantly driven by business, with finance rarely taking the lead in these projects. Against the background of growing integration and expectations of long-term growth in this space, we encourage finance professionals to examine their roles and solidify their position as strategic partners that support successful Web3 initiatives.

Acknowledgements

We thank Tobias Schaffner, Mascha Steenblock, Orkan Sahin, Maxime Ochrymowicz and Thomas K. Birrer (Professor of Corporate Finance, HSLU) for their valuable contribution to this article.

About this article

Authors
Sven Goeggel

Partner, Global Treasury Services | EY Switzerland

Passionately providing clients with a broad array of treasury services, dedicated family man and passionate mountain biker.

Darko Stefanoski

Partner, Law Leader in Financial Services | EY Switzerland

His heart belongs to two places: one is Macedonia, where he has his roots, and the other is Switzerland, where he was born and lives.

Benjamin Banusch

Senior Manager, Disruptive Technologies Lead | EY Switzerland

Experienced Technology Strategy Advisor, supporting organizations to face the opportunities and implications of emerging technologies such as DLT/Crypto Assets and Quantum Computing.

Related topics Assurance Finance Blockchain Digital Technology
Upvote