Capital markets are currently experiencing transformative changes as shifts in monetary policy reveal a fragmented global economy. Recent analyses indicate that the infrastructure forming around borderless digital asset transactions is emerging as a robust alternative to the traditional financial system. This evolution in blockchain technology presents a significant opportunity to address the financial challenges faced by two distinct yet critical segments of the population: established financial institutions and the 1.4 billion individuals worldwide who remain unbanked.
For financial institutions, blockchain offers next-generation speed and scalability, enabling them to operate more efficiently. Meanwhile, the unbanked populace stands to benefit greatly by gaining access to essential financial services and equity. The industry’s current focus revolves around comprehensively addressing the needs of both sectors to maximize the potential of this groundbreaking technology.
Historically, marginalized communities have sought solutions through innovative technology, while traditional finance has only begun to appreciate its value. Jenny Johnson, CEO of Franklin Templeton, has underscored the imperative to harness blockchain, pointing out that asset management costs have surged by 80% over the past decade, while revenues have declined by 15%. The firm’s introduction of a tokenized money market fund has significantly reduced transaction costs—from approximately one dollar to less than a penny—thereby offering considerable efficiency for an institution managing a staggering $1.7 trillion in assets.
This institutional uptake validates an infrastructure that simultaneously aids individuals excluded from the conventional financial framework. For instance, the same blockchain networks that facilitate quick and inexpensive remittances—such as sending $50 from Dubai to the Philippines in mere seconds—could dramatically streamline financial transactions. According to data from the IndexBox platform, global transaction banking generates close to $1.4 trillion annually, yet operational inefficiencies account for a staggering 8-10% of that total. Furthermore, the situation is equally dire for the unbanked, as global remittances exceeded $900 billion in 2024, with average fees hovering around 6.62%, and in some regions, fees can soar to 10% or more.
Major financial institutions, including BlackRock, Fidelity, and JPMorgan, are now showcasing blockchain’s viability on an unprecedented scale. Meanwhile, humanitarian agencies like the United Nations Refugee Agency are leveraging this technology to distribute aid directly to those in dire need, circumventing traditional intermediaries. This dual application highlights blockchain’s capacity not only for efficiency but also for promoting equity.
The momentum gained by institutions creates vital infrastructure enhancements accessible to a broader user base. As large financial entities invest in blockchain networks, they fortify the foundational rails that underbanked populations can utilize. Evolving regulatory frameworks aimed at institutional adoption provide legal certainty that ultimately benefits all users.
Real-world applications further showcase this dual utility. For example, in Argentina—where inflation rates soared to 236.7% by late 2024—both individuals and institutions have resorted to digital assets as a necessity. Data reveals that 61.8% of crypto transactions in the country involve stablecoins, used not for speculation but as vital tools for economic preservation against a sharply devalued peso. This urgent adoption underscores the technology’s inherent value: reducing dependency on fragile intermediaries and unreliable national monetary systems.
The same systems that enable a fund manager to hedge institutional exposures can simultaneously allow a family to safeguard its savings via stable, borderless value transfers. Modern blockchain networks are already processing tens of billions of transactions for millions of accounts globally, demonstrating the capability to support institutional-scale operations while remaining user-friendly for individual users.
To fully unlock the potential of this technology, deliberate design is required for both institutional and individual audiences. This entails creating interfaces sophisticated enough for treasury management yet simple enough for first-time users, along with compliance frameworks that meet regulatory requirements while ensuring access for underserved populations.
Success in this evolving landscape will depend on the establishment of partnerships between traditional financial institutions and organizations dedicated to serving the underbanked, such as mobile money operators and community organizations. The overarching goal is to achieve a dual mandate of efficiency and equity. The networks that enable pension funds to tokenize assets can equally facilitate access to credit for farmers, while the same rails ensuring institutional settlements can streamline humanitarian aid delivery directly to refugees.
The groundwork for borderless, frictionless value transfer is already laid, regulatory frameworks are in flux to support this transformation, and the pace of institutional adoption is quickening. Ultimately, success in this endeavor will be measured not merely by the efficiency improvements within existing systems, but also by the number of individuals newly integrated into economic participation for the first time.
