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As massive capital from traditional finance begins adopting blockchain infrastructure not merely as an investment target but as an actual operational system, a faster-than-expected shift in the financial paradigm is being signaled.
According to crypto-focused media outlet Cointelegraph on March 3 (local time), Bitwise Chief Investment Officer Matt Hougan analyzed that the migration of Traditional Finance (TradFi) systems to blockchain-based digital asset networks will occur much sooner than the market anticipates. Hougan stated that the successful launch and stabilization of spot Bitcoin (BTC) and Ethereum (ETH) ETFs served as a decisive catalyst accelerating the adoption of digital assets within traditional finance. He added that while digital assets were once regarded merely as speculative instruments, they are now being recognized as core technologies capable of maximizing the efficiency of the financial system.
The primary reasons traditional finance is turning to blockchain are its 24/7 settlement capabilities and groundbreaking cost-efficiency. Hougan emphasized that delays over weekends and holidays, as well as complex intermediary procedures inherent in existing financial networks, can all be resolved in an on-chain environment. “We are already witnessing early signs of traditional finance migrating onto digital asset networks,” Hougan said. “Beyond simple asset tokenization, every financial process, including payments, custody, and settlement, will be reorganized on a blockchain foundation.”
Bitwise noted that the proportion of major financial institutions building proprietary blockchain networks or utilizing existing digital asset networks to process large-scale fund settlements is rising sharply each quarter. In particular, large banks are actively introducing cross-border remittance services using stablecoins and implementing contract automation through smart contract platforms such as Ethereum. This trend serves as a powerful driver that lowers the cost of financial services while increasing processing speed, delivering tangible benefits to consumers.
Growing regulatory clarity alongside the maturation of the digital asset market is also accelerating the inflow of traditional finance. Coupled with the pro-digital asset stance of the Donald Trump administration, legislative procedures have gained momentum, significantly lowering entry barriers for institutional investors. Hougan projected that as institutional capital moves en masse into digital asset networks, the overall market capitalization will undergo a renewed phase of value reappraisal.
The convergence of traditional finance and digital assets is now an unavoidable global trend, with blockchain establishing itself as the standard for next-generation financial systems. Global financial institutions are moving beyond simply including digital assets in their portfolios and are instead directly operating blockchain infrastructure to secure competitive advantages. This infrastructural transformation is expected to mark the beginning of sweeping changes that will redefine the very foundation of the financial industry.
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