Report from Bitget Indicates 33% of Crypto Job Seekers Come from Banking Backgrounds

A recent report from Bitget sheds light on the hiring landscape within the blockchain sector, revealing that one-third of applicants for crypto-related positions have prior experience in banking and finance. The analysis underscores the ongoing trend of professionals transitioning from traditional financial institutions to the dynamic world of cryptocurrencies.

According to Bitget, the allure of higher salaries and opportunities for innovation continues to draw talent away from the banking sector. The decline in revenue among investment banks, surpassing 50% year-on-year, has prompted widespread layoffs and facilitated the exodus of skilled professionals.

Large financial institutions such as Morgan Stanley, BlackRock, and Goldman Sachs have undergone significant restructuring efforts, resulting in over 50,000 job cuts since 2020. Furthermore, in 2023 alone, these institutions collectively slashed 20,000 positions. The younger workforce’s increasing preference for technology-oriented roles has further accelerated the talent drain from traditional banks. Meanwhile, tech giants like Coinbase, Amazon, Alphabet, and Microsoft have been actively recruiting, adding between 20 and 200 employees each.

Despite the challenges faced by the crypto industry, including the FTX crisis in 2022 which led to over 2,000 job losses, companies like Coinbase and Amber Group continued their hiring spree. One notable aspect highlighted in the report is the discrepancy in compensation between traditional banks and the crypto industry.

While banks have scaled back salaries due to remote work arrangements and digital transformation, crypto firms offer more lucrative packages, especially for remote positions. Gracy Chen, Managing Director of Bitget, emphasized the significant shift in talent from banking to cryptocurrency, driven by the promise of higher pay and greater innovation prospects. In 2022, 36% of blockchain-related roles were remote-based, twice the global average.

Junior engineers joining crypto startups in London can expect starting salaries of approximately $125,000, compared to $87,810 offered by investment banks for similar positions. The disparity in average salaries is even more striking, with banks averaging around $54,000 compared to approximately $115,667 in the crypto sector.

Overall, factors such as superior compensation, industry prestige, growth potential, and flexibility are driving professionals towards opportunities in the crypto industry. In response, banks are adapting by transitioning more roles to remote work, as indicated by 74% of CFOs surveyed by Deloitte. The report also examines key developments in 2023 that propelled the adoption of blockchain technology within traditional banking.

Major players like HSBC, JPMorgan Chase, and Citi Group initiated projects aimed at integrating decentralized technologies. The report predicts substantial investments in blockchain retail banking, with spending projected to reach $40.4 billion by 2031. Bitget itself experienced notable growth in 2023, expanding its team from 1,100 to 1,500 employees, reflecting its upward trajectory.