1. Why institutions resisted Web3 in the first place
For years, the Web3 space and the institutional world spoke different languages — and made little effort to translate.
From the institutional side, Web3 was often seen as: • A regulatory black hole, hard to grasp and even harder to supervise. • A space dominated by speculation, meme coins, and overnight pump-and-dumps. • A techno-ideological movement that rejected traditional governance altogether.
Add to that the early scandals (Mt. Gox, ICO scams, DeFi exploits), and it’s easy to see why public actors chose to stay on the sidelines.
There was also a cultural mismatch. Many Web3 builders embraced anonymity, permissionless environments, and anti-institutional rhetoric — hardly appealing to governments or public agencies trying to work within legal frameworks and long-term public interest.
In short: the early Web3 narrative didn’t offer a clear value proposition to institutions.
2. What changed? And why now?
The past two years have brought a noticeable shift. Institutions are not only showing curiosity — they’re testing, funding, and in some cases, building with Web3 principles.
Why? Several macro trends are converging:
- Digital sovereignty is back on the agenda
Governments want control over their digital infrastructure — and they’re wary of both U.S. Big Tech and Chinese platforms. Web3 offers a third path: open, auditable, decentralized systems.
- Trust in centralized systems is eroding
From data leaks to bank collapses, citizens are questioning how their information, identity, and assets are managed. Institutions are now exploring trustless infrastructure as a response to this crisis of confidence.
- Climate and impact measurement require transparency
When it comes to carbon credits, ESG claims, or public subsidies, blockchain-based traceability is becoming an essential tool to fight greenwashing and improve public accountability.
- The next generation of researchers, engineers, and founders is already native to Web3
Universities and institutions can’t ignore this shift in talent and ideas. Engaging with Web3 is becoming a strategic necessity to stay relevant.
- Leverage blockchain efficiency for cost and speed gains
Institutional players, like BlackRock, are increasingly drawn to blockchain infrastructure for its ability to dramatically reduce transaction costs and settlement times, making asset tokenization a powerful tool for streamlining operations and unlocking new liquidity.
3. How do we know it’s really happening? Look at the signals.
Beyond press statements, there are concrete actions:
Public funding is opening up • France 2030 is funding blockchain-based infrastructure in digital identity and supply chain traceability. BPI has recently announced the deployment of a 25-million fund to invest in tokens in French crypto start-ups • The EBSI (European Blockchain Services Infrastructure) is piloting cross-border digital credentials and public procurement systems using DLT. • Germany’s BMWK has supported tokenization and decentralized data sharing projects through its Digital Technologies program.
Accelerators are welcoming Web3 startups • Bpifrance’s Blockchain Innov program backs impact-driven Web3 startups like EvidenZ and iExec. • Switzerland’s Trust Square, supported by public and academic partners, is home to startups in DeFi, tokenized finance, and Web3 security. • The UK’s Tech Nation included Cheqd (decentralized identity) in its national innovation showcase.
Research institutions are investing long-term • The University of Zurich and EPFL run full blockchain research centers with academic publications and student pipelines. • MIT Media Lab and Stanford are exploring on-chain governance, cryptographic reputation systems, and decentralized science. • In France, CNRS labs are now publishing peer-reviewed work on Web3 governance and token design.
These aren’t one-offs. They’re the foundation for a long-term shift in how institutions engage with digital infrastructure.
4. What this means for investors, builders, and insiders
This wave of institutional attention isn’t just about capital or legitimacy — it’s about new rules of the game.
For builders:
You’ll need to learn to navigate both sides. Being Web3-native isn’t enough.
Understanding institutional timelines, language, and constraints is now a strategic advantage — not a compromise.
For researchers:
There’s fertile ground for collaboration. Institutions are eager for rigorous frameworks around governance, incentives, ethics, and public utility. If you’re doing the work — they’ll listen.
For investors:
This signals a maturing market. Crypto projects with solid institutional alignment and public-use cases may not moon overnight — but they’ll build quietly, steadily, and with long-term support.
Final thought
Institutions are not entering Web3 and crypto space to follow a trend. They’re coming because the problems they’re trying to solve — trust, transparency, sovereignty — are structural, and Web3 offers serious tools to address them.
This doesn’t mean everything will become decentralized overnight. But it does mean one thing: Web3 is no longer just a subculture. It’s becoming public infrastructure.
And that changes everything.
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