Finance Leaders Predict Blockchain Dominance by 2028

Blockchain to Reshape Finance by 2028, Say 90% of Leaders

The financial industry is bracing for a significant shift, with a vast majority of finance leaders anticipating blockchain technology will revolutionize the sector within the next few years. A recent report suggests widespread adoption and integration are on the horizon.

Traditional financial institutions have already made substantial investments in this technology. According to a study titled "Banking on Digital Assets," banks have collectively invested over $100 billion in blockchain and digital asset initiatives since 2020.

Key Findings from the "Banking on Digital Assets" Report:

• The report, a collaborative effort by Ripple, CB Insights, and the UK Centre for Blockchain Technologies, analyzed over 10,000 blockchain deals and surveyed more than 1,800 global finance executives.
• A staggering 90% of surveyed finance leaders believe blockchain and digital assets will have a significant or massive impact on finance by 2028.
• Major banks are increasing their investments in key areas like custody solutions, tokenization platforms, and payment infrastructure.

This investment is occurring despite ongoing regulatory uncertainties and market volatility within the digital asset space.

Areas of Focus for Financial Institutions:

The report highlights specific areas where traditional financial institutions are concentrating their blockchain efforts:

• Payment infrastructure is receiving the largest share of investment.
• Other key areas include crypto custody solutions, tokenization of assets, and on-chain foreign exchange platforms.
• Approximately 25% of investments are directed towards infrastructure providers that facilitate blockchain settlement and asset issuance.

While many institutions are exploring digital asset custody (65% of bank respondents), most are prioritizing stablecoins and tokenized real-world assets over consumer-facing crypto offerings. Fewer than 20% of banks reported offering crypto trading or retail wallets.

The shift appears to be more about infrastructural modernization than speculative trading. Institutions are leveraging blockchain to improve cross-border payments, streamline balance sheet management, and reduce reliance on outdated legacy systems. Companies like Ripple, offering enterprise blockchain solutions, see these findings as validation that real-world asset tokenization is moving into the implementation phase.

Even with regulatory clarity still pending in many regions, over two-thirds of surveyed banks anticipate launching digital asset initiatives within the next three years. These initiatives could range from piloting tokenized bonds to developing interoperable settlement layers for central bank digital currencies (CBDCs) and private stablecoins.

Investment from traditional finance firms in blockchain reached a post-FTX high in Q1 2024, with emerging markets like the UAE, India, and Singapore driving adoption at a faster pace than the U.S. and Europe.

For blockchain firms and infrastructure providers, the focus is shifting away from hype and retail mania, and towards transforming the underlying infrastructure of global finance.