𝐓𝐡𝐢𝐬 𝐨𝐧𝐞 𝐢𝐬 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐛𝐨𝐨𝐤𝐬—𝐥𝐢𝐭𝐞𝐫𝐚𝐥𝐥𝐲!
#WEB3 in Financial Services is here. As stated by Rita Martins, blockchain, digital assets, and crypto are disrupting traditional finance in a once-in-a-lifetime event.
Overnight development? Not really.
By now, Web3 has become indispensable in the financial sector, as shared by Laurent Marochini from Societe Generale Securities Services.
After years in development, emergent use cases are driving change in traditional financial services. Beyond custody and evolution of payments, we see #Tokenization, lending and borrowing, digital assets, and more, all coming into place to digitalize what we today call “traditional finance.”
𝐁𝐮𝐭 𝐰𝐡𝐚𝐭’𝐬 𝐛𝐞𝐡𝐢𝐧𝐝 𝐢𝐭?
Incumbents this time are leading the way, with Mastercard and Visa enabling crypto payments and prioritizing digital identities. However, it is the VCs and startups, especially those emerging from hubs like #cryptovalley, that are beginning to reimagine finance. They are introducing terms such as #DeFi and interconnecting real assets with some of these services.
𝐁𝐢𝐠 𝐩𝐢𝐜𝐭𝐮𝐫𝐞:
While there are still industry changes needed for mainstream adoption of Web3, some jurisdictions are bringing existing regulatory frameworks that enable a direct link between physical and digital assets.
𝐖𝐢𝐥𝐥 𝐖𝐞𝐛3 𝐞𝐯𝐞𝐫 𝐡𝐚𝐯𝐞 𝐚 𝐂𝐡𝐚𝐭𝐆𝐏𝐓 𝐦𝐨𝐦𝐞𝐧𝐭?
As we speak, a tokenized dollar called Tether is already being used as a means of payment in various countries where limited access to hard currency leaves no option but to access such digital alternatives.
𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐌𝐚𝐧𝐚𝐠𝐞𝐫𝐬?
Rita Martins highlights, “Often leaders across the globe declare that ‘crypto’ is dead and that WEB3 is a fad. But no one can argue that trading, store of value, and perhaps the less visible infrastructure development are already changing the fabric and ‘roles’ of existing players—as well as their business models.”
𝐖𝐢𝐥𝐥 𝐰𝐞 𝐧𝐞𝐞𝐝 𝐁𝐚𝐧𝐤𝐬?
The answer is not straightforward. As Gen Z proves they are more open to changing banking partners, the real question is what value proposition banks can provide within such change. Peace of mind may be one. However, the recent bankruptcy of Flowbank presents a challenge to everyone along the supply chain. Given this backdrop, convergence seems the most optimal path forward.
Stay tuned, stay Curio!
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