Traditional finance is being rebuilt around crypto

In recent months, significant transformations have been taking place in the financial sector as major institutions adopt blockchain technology and embrace digital assets. Visa launched its new Tokenized Asset Platform, enabling banks like BBVA to create and manage digital tokens starting pilot programs in 2025. Additionally, Morgan Stanley's E-Trade is researching the provision of direct cryptocurrency trading services. Concurrently, Goldman Sachs made headlines by spinning off its Digital Assets Platform into its own entity, forming strategic partnerships with Tradeweb Markets and investing heavily in over $700 million in Bitcoin ETFs while exploring market making in Bitcoin and Ethereum. The evolution of digital finance extends beyond mere payment processing; it signifies a substantial shift in the infrastructure of global finance. Citi's Tony McLaughlin has projected a future in which blockchain capabilities allow financial institutions to synchronize transactions transparently, resulting in a shared source of truth for balance sheets. The implications of these advancements are profound, affecting everything from regulatory approaches to investment strategies among financial players. Moreover, blockchain technology is revolutionizing the way money traverses international borders. The World Bank estimated the global remittance market to be valued at $630 billion in 2022, and innovations in blockchain are expected to enhance the execution of cross-border transactions substantially. Stablecoins play a pivotal role by serving as a linkage between traditional finance and decentralized finance (DeFi). The landscape is further changing with the emergence of decentralized finance, which seeks to replace traditional financial intermediaries with automated smart contracts capable of executing complex transactions in a fraction of the time. Lastly, the integration of blockchain and Artificial Intelligence (AI) is fundamentally reshaping various sectors of finance, from fraud detection to overall market surveillance. The transformative potential of these advancements signifies not just a wave of disruption but an era of integration that could redefine the entire financial system, leading to increased efficiency and connectivity across the globe.