You may know blockchain as the technology behind Bitcoin and several other cryptocurrencies. However, many investors don't have a thorough understanding of blockchain or the best ways to invest in this exciting tech trend.
Here's a brief overview of blockchain technology, followed by some of our favorite blockchain stocks -- and one important principle blockchain investors should keep in mind.
Definition
What is blockchain?
Blockchain is a form of ledger technology (also known as distributed ledger technology) that keeps records in a decentralized manner. A bank, for example, can store information (say, payment transactions) on its internal servers, but blockchain technology allows the creation of an unchangeable public ledger that's accessible to all users. Blockchain ledgers are a very secure means of storing data since they cannot be modified retroactively, and they can be used anonymously to protect users' privacy.
It's worth noting that blockchain and cryptocurrency are two different concepts. Blockchain is the underlying technology that powers cryptocurrencies, but it has many other potential applications that have nothing to do with Bitcoin (BTC -0.35%) or other digital currencies.
Think of cryptocurrencies as a car and blockchain as its motor. Sure, you need a motor to power a car, but there are many other potential applications for motors. Just to name a few, blockchain has implications for:
- Digital IDs
- Rewards and loyalty programs
- Copyright protection
- Digital voting
- Real estate transfers
- Medical records
- Wills
Best blockchain stocks
Best blockchain stocks to consider
Many publicly traded companies now incorporate blockchain into their operations, offer blockchain-related services to customers, or play a role in the cryptocurrency industry. Some are exclusively focused on blockchain innovation and/or cryptocurrencies, while others are using blockchain-related products and services to complement an existing successful business.
With that in mind, here's a list of seven excellent blockchain companies to consider if you want exposure to this exciting technology in your stock portfolio.
1. Nvidia
Nvidia (NVDA 2.06%) is the leading manufacturer of graphics processing units (GPUs), which are essential components in such important technological areas as artificial intelligence, autonomous vehicles, and gaming. For good reason, most investors are paying close attention to Nvidia for its data center GPU chips, which are an essential component of AI technology.
Artificial Intelligence
In addition, GPUs are key hardware components of cryptocurrency mining. In a nutshell, "miners" use specialized GPUs to process transactions on the blockchain and are rewarded with newly minted digital coins. Although sales of Nvidia's crypto-targeted CMP chips aren't as big a part of its revenue as they once were, the company still produces mining chips, such as the Nvidia CMP Hx. And regardless of what Nvidia's mining chips do, the rest of Nvidia's business is an absolute powerhouse market leader.
2. Block
Financial technology (fintech) company Block (XYZ 0.34%), formerly known as Square, has two main components to its business -- its payment-processing ecosystem for small businesses and its Cash App personal financial platform. The company also has operations in business lending, a stock trading platform, and buy-now-pay-later (BNPL) financing. The company also operates the Square Online Store platform, which helps merchants build out e-commerce and omnichannel capabilities.
E-commerce
Block is a blockchain stock in two main ways. Most obviously, Cash App allows users to buy and sell Bitcoin quickly and easily. With the company reporting about $10.2 billion in Bitcoin purchases in 2024 alone, this is a significant part of the company's business.
Also, Block has several other blockchain-related projects. There's the Bitkey self-custody bitcoin wallet. The company offers the Proto suite of Bitcoin mining products and services. Block also has a team that focuses on Bitcoin open source work, which is known as Spiral.
3. IBM
IBM's (IBM 0.02%) performance in recent years has been impressive, due to strong results in its software business and a solid AI strategy.
On the blockchain side of things, IBM Blockchain has already provided transformative solutions for clients such as Home Depot (HD 1.42%), Renault (RNSDF -0.46%), and many more. It could have a major growth runway if blockchain-based solutions gain more traction in the future. As an example, IBM Blockchain is focusing on helping customers build more dependable and efficient supply chains.
4. Mastercard
Payment processing giant Mastercard (MA 0.56%) has grown tremendously for several years as the trend toward a cashless economy has led to increasing volumes of debit and credit card transactions. Blockchain technology has the potential to transform the cashless payment space, particularly when it comes to cross-border money transfers, which have historically been slow and costly.
Mastercard has announced partnerships with blockchain technology companies and has a Crypto Card partner program to provide crypto-funded Mastercard payment cards. Mastercard also focuses on blockchain security, with its Mastercard Crypto Credential platform, and the payments giant also provides crypto consulting services for financial institutions, governments, and more.
5. Amazon
In addition to operating the world's largest e-commerce platform, Amazon (AMZN 0.23%) also operates the leading cloud infrastructure service, Amazon Web Services. The AWS platform offers Amazon Managed Blockchain, which allows customers to build Web3 applications on public and private blockchains.
There's also definite potential for Amazon to eventually incorporate blockchain technology into its massive e-commerce business. Blockchain currently makes up a minuscule percentage of Amazon's revenue, but as the technology evolves, there are possibilities for much more.
6. Coinbase Holdings
Coinbase (COIN -1.75%) is the world's largest cryptocurrency exchange, with more than 150 different digital assets available to trade on its platform. The company has roughly 108 million verified users in more than 100 countries around the world, and more than $1.7 trillion in annualized cryptocurrency trading volume flowed through the platform as of early 2025. Over $400 billion in cryptocurrency assets are stored on Coinbase's platform.
One of the best things about Coinbase -- at least from a blockchain investor's point of view -- is that no matter which cryptocurrencies end up leading the way, the company should be a big beneficiary as the technology grows.
7. Global X Blockchain ETF
Maybe the best way for you to invest in blockchain technology isn't through a single stock but through an exchange-traded fund (ETF). The Global X Blockchain ETF (BKCH -1.03%) was formed in mid-2021 and is designed to allow investors to gain exposure to an entire basket of blockchain stocks with a single investment.
Exchange-Traded Fund (ETF)
The Global X Blockchain ETF has an expense ratio (annual investment fee) of 0.50% of assets, which is reasonable for a targeted fund. As of March 2025, the ETF invested in 25 different companies, including several previously discussed (Coinbase is the fund's top holding), as well as some that aren't directly listed on U.S. stock exchanges. Other top holdings include Mara Holdings (MARA -11.72%), Core Scientific (CORZ 0.07%), and Riot Platforms (RIOT 0.49%). In short, if you believe in the long-term potential of blockchain technology but don't want to try to pick the winners in the space, this ETF could be right for you.
Related investing topics
How to invest
How to invest in blockchain stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
The takeaway
One important takeaway
Notice that all seven of these stocks are either well-established businesses or leaders in their respective industries (or ETFs that invest in a variety of companies).
Although blockchain technology has been around for a while, it’s still in the early days of real-world implementation. Blockchain has the potential to significantly impact finance, technology, and various other industries in the coming years, though its widespread adoption may take longer to materialize. For this reason, it's smart to focus on companies that will benefit from the growth of blockchain technology, but will remain resilient even if their blockchain initiatives don't succeed.
Blockchain FAQs
Blockchain FAQs
Is cryptocurrency a good investment?
Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency and the projects or businesses they facilitate. Several publicly traded companies can provide limited exposure to the cryptocurrency market, but those investments won't come with the same focus on a cryptocurrency or blockchain project as investing directly in a crypto asset.
Are blockchain stocks cyclical?
As assets with finite supplies, cryptocurrencies go through cycles since price swings result from fluctuating supply and demand. Businesses that make use of blockchain technology and cryptocurrencies may also be cyclical; however, since revenue-generating organizations are not the same as a raw asset like currency, they have different cycles from crypto assets such as bitcoin.
What is Ethereum?
Ethereum is the decentralized, open-source technology that powers much of the crypto world. Applications ranging from decentralized finance to non-fungible tokens (NFTs) to enterprise blockchain solutions rely on Ethereum blockchain technology. Ethereum's native token, Ether (CRYPTO:ETH), is the second-largest coin after by market size and value.
Do blockchain stocks pay dividends?
While the concept of earning dividends from a digital currency may be new, there are ways to earn passive income through dividends from companies making use of blockchain technology.
What are some problems with blockchain technology?
There are several problems with blockchain technology, a few being scalability, energy consumption, speed, lack of universal standards, and privacy.
