Capital markets are currently experiencing significant fluctuations as monetary policy shifts illuminate the challenges of a fragmented global economy. In this context, the stability offered by blockchain technology emerges as a compelling alternative to traditional financial systems. Blockchain presents itself as a solution to various financial obstacles, particularly benefiting two distinct groups: financial institutions and the 1.4 billion individuals who are currently unbanked.
Financial institutions stand to gain next-generation speed and scalability from blockchain, while unbanked populations could see improved accessibility and equity in financial services. To unlock blockchain’s full potential, stakeholders must address the needs of both demographics. Historically, those at the fringes of finance have turned to modern technology for solutions, while traditional financial circles are beginning to recognize the appeal of blockchain.
Recent statements from Franklin Templeton CEO, Jenny Johnson, highlight the industry’s urgency to integrate blockchain into existing systems. She emphasized the rising operational costs in asset management—up 80% in the last decade against dwindling revenues. Franklin Templeton’s pioneering efforts include the launch of a tokenized money market fund that dramatically lowers transaction costs from $1 to less than a penny. For an organization managing $1.7 trillion, these efficiencies could be transformative, validating blockchain as a viable infrastructure for both corporate finance and underserved populations.
The same technology enabling institutional efficiencies could streamline $50 remittances from Dubai to the Philippines, reducing settlement time from several business days to mere seconds. Blockchain alleviates friction in transactions, whether dealing with large tokenized asset settlements or simple personal remittances.
Major financial institutions, including BlackRock, Fidelity, and JPMorgan, are demonstrating blockchain’s institutional viability on an unprecedented scale. Concurrently, organizations like the United Nations Refugee Agency illustrate its humanitarian applications by providing direct assistance to those in need, bypassing traditional financial intermediaries. These converging developments showcase blockchain’s dual capabilities of enhancing efficiency while promoting equity.
The institutional momentum surrounding blockchain also lays the groundwork for improved infrastructure that benefits everyone. When significant financial entities invest in blockchain networks, they reinforce the systems accessible to underbanked communities. Furthermore, as regulatory frameworks evolve to support institutional adoption, they provide essential legal clarity that enhances the user experience for all.
Numbers drive both institutional interest and social necessity. The global transaction banking landscape generates nearly $1.4 trillion in annual revenue, yet operational inefficiencies are estimated to cost institutions 8-10% of that revenue. Blockchain offers definitive solutions to these issues. For the unbanked, the stakes are equally high; remittances—surpassing $900 billion globally—incur average fees of 6.62%, often reaching 10% in certain corridors. High transaction fees exacerbate financial hardship for working families, underscoring the need for affordable remittance solutions.
The relationship between institutional efficiency and the inclusion of marginalized populations becomes increasingly evident. The same blockchain networks facilitating swift, low-cost transactions for financial institutions can equally serve individuals making remittances.
Real-world examples further demonstrate blockchain’s utility. In Argentina, where inflation exceeded 236.7% by late 2024, both institutions and individuals have turned to digital assets as a means of economic survival. Recent data indicates that 61.8% of crypto transactions in Argentina now involve stablecoins, revealing how this technology can mitigate dependence on unstable national currencies.
The existing infrastructure of blockchain has already processed tens of billions of operations globally, catering to millions of accounts. While the technology proves robust at an institutional level, it remains accessible to everyday users. Realizing its full potential, however, necessitates careful design tailored to serve both sophisticated institutional needs and the simplicity required by first-time users.
This effort implies creating compliance frameworks that not only meet regulatory standards but also enhance accessibility for underserved communities. Success in this industry will depend on partnerships that span both established financial institutions and grassroots organizations championing underbanked populations.
The overarching goal should not be a choice between efficiency and equity, but rather a synthesis of both. Blockchain’s promise lies in its ability to unify these diverse needs, offering essential services across various user groups. The same platforms empowering pension funds to tokenize assets can play a pivotal role in helping smallholder farmers access credit.
As builders within this emerging landscape, there is a profound responsibility to adopt purposeful implementation strategies. Ensuring that institutional adoption aids—not undermines—financial inclusion is essential. The framework for seamless, boundary-less value transfer is now established, and as regulatory conditions evolve, institutional adoption accelerates.
Ultimately, the measure of success in this space will not only be defined by efficiency improvements but also by the extent to which new participants are integrated into the broader economic landscape. The choices made now will shape the future of blockchain, determining whether it becomes a tool for the privileged or a bridge to financial empowerment for all. Stakeholders from both institutional and unbanked sectors are counting on responsible decision-making to fulfill this promise.
