Walking through SmartCon 2025, I was genuinely impressed by the level of traditional finance representation. This wasn’t a crypto conference anymore - this was traditional financial infrastructure leaders actively shaping blockchain development.
The Institutional Presence
Major institutions present and actively participating:
- JPMorgan Chase - Presenting on blockchain settlement infrastructure
- Swift - Discussing cross-border payment innovation
- DTCC - Sharing insights on securities settlement
- Citibank - Exploring tokenized deposits
- Fidelity - Presenting on institutional custody solutions
- Mastercard - Discussing payment card integration with stablecoins
This isn’t passive observation. These institutions are building on blockchain and sharing their learnings publicly.
The Focus: Tokenized Assets & Cross-Chain Payments
Two themes dominated the institutional sessions:
1. Tokenized Assets
- Tokenized deposits (bank money on blockchain)
- Securities settlement on distributed ledger
- Real-world asset tokenization at scale
- Custody infrastructure for digital assets
2. Cross-Chain Payments
- Stablecoin-based remittances
- Interbank settlement on blockchain
- CBDC integration experiments
- Instant cross-border transactions
What Changed?
2019-2022: Banks exploring blockchain through private consortiums
2023-2024: Pilots and proofs-of-concept
2025: Production deployments and public collaboration
The shift is dramatic. Banks are no longer afraid to be associated with “crypto.” They’re actively building the infrastructure that bridges traditional and decentralized finance.
The Questions This Raises
For me, the presence of these institutions raises important questions:
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Is this co-option or collaboration? Are banks adopting blockchain on their terms, or genuinely embracing decentralization?
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What happens to existing infrastructure? Will Swift be replaced, or will it become a blockchain-based system?
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Where does this leave pure crypto projects? Do banks become competitors or partners to DeFi protocols?
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What’s the timeline for mainstream adoption? If JPMorgan and Swift are all-in, how long until blockchain settlement is standard?
I’m optimistic but cautious. Traditional finance adoption could accelerate blockchain mainstream acceptance, but we need to ensure we don’t lose the decentralization and permissionless innovation that makes blockchain valuable.
What do others think? Is TradFi adoption good for the blockchain ecosystem?
#Banking #Payments #TradFi #SmartCon2025
Great discussion on Swift and cross-border payments @jessica_banking. Let me add insights from the payment rails evolution panels I attended:
How Regulated Stablecoins Are Becoming the Bridge
The narrative shifted dramatically in 2024-2025 from “crypto vs banking” to “stablecoins as payment rails.”
What Changed:
Pre-GENIUS Act (US) and MiCA (EU):
- Stablecoins in regulatory gray area
- Banks couldn’t touch them
- Payment processors avoided integration
- Merchants wouldn’t accept them
Post-regulation:
- Clear licensing requirements
- Banks can custody stablecoins
- Payment processors integrating (Stripe, Visa, Mastercard)
- Merchants accepting stablecoin payments
Real-World Integration Examples
Visa + Stablecoins
- USDC settlement on Ethereum and Solana
- Crypto.com Visa card with stablecoin backing
- Real-time settlement to merchant accounts
- Lower fees than traditional card networks
Mastercard + Blockchain
- Crypto card programs with multiple partners
- Testing CBDC integration
- Exploring tokenized deposit solutions
- Cross-border payment pilots
Stripe + Stablecoins
- Accept USDC payments
- Instant settlement to bank accounts
- Lower fees than credit cards (1.5% vs 3%)
- Global reach without correspondent banking
The Payment Evolution Timeline
Traditional payment rails:
- Credit cards: 3%+ fees, T+2 settlement
- ACH: 1-3 days, limited to domestic
- Wire transfers: $25-50 fees, same-day at best
- International: 3-7% fees, 2-5 days
Stablecoin payment rails (today):
- Fees: <0.1% on-chain, ~1% with fiat ramps
- Settlement: Minutes
- Global: Works anywhere internet exists
- Programmable: Smart contract automation
The gap is closing fast.
Regulated Stablecoins as the Bridge
This is the key insight: Regulated stablecoins are becoming the bridge between TradFi and crypto.
For traditional users:
- Familiar dollar-denominated value
- Regulatory clarity and consumer protection
- Bank-like stability and insurance (eventually)
- Easy on/off ramps
For crypto users:
- Blockchain-native asset
- Composable with DeFi
- Self-custody option
- Permissionless transfers
For institutions:
- Compliance-friendly
- Integration with existing systems
- Predictable regulatory treatment
- Scalable infrastructure
The Infrastructure Requirements
@robert_fintech mentioned BlockEden - here’s what payment infrastructure requires:
High-throughput blockchain access:
- Real-time transaction confirmation
- High-availability nodes (99.99%+ uptime)
- Multi-chain support (Ethereum, Solana, Polygon, etc.)
- Instant mempool monitoring
Payment-specific features:
- Transaction status webhooks
- Batch payment processing
- Gas price optimization
- Failed transaction retry logic
The payment use case is driving significant blockchain infrastructure demand. Stablecoin payment volume is growing faster than any other on-chain activity.
What payment innovations are people most excited about? Instant cross-border remittances? Programmable payment flows? Something else?