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Traditional financial institutions must merge with blockchain technology
In a panel discussion at Money20/20, Ripple’s Cassie Craddock, Domin Network’s Ioana Surpateanu, and Kraken’s Kaushik Sthankiya explored the evolution of blockchain technology and its security implications in the emerging market.
All panelists agreed on the importance of merging traditional finance (TradFi) with blockchain technology to understand its broader impact and the future of blockchain.
Surpateanu noted: “Blockchain helps optimize and attract consumers in creative industries. The coexistence of TradFi and blockchain is already a reality and will continue to evolve.
Throughout Money20/20, speakers highlighted the importance of interoperabilityand Surpateanu echoed this sentiment by stating that interoperability prevents blockchain fragmentation and promotes innovation.
Panelists discussed the need for centralized exchanges as a way to secure platforms for retail and institutional clients to engage in crypto.
A busy year for blockchain technology
Reflecting on the past year, the panel delved into the substantial growth of the crypto market, particularly in the blockchain walk.
“In 2017, when I joined Citigroup, the mantra was “blockchain, not crypto.” Since then, the focus has shifted to infrastructure,” Surpateanu said. “We are now talking about a cryptocurrency market cap exceeding US$2.6 trillion.”
Surpateanu focuses on developing technology that validates and authenticates data across different layers of blockchain, allowing users to exchange digital items for physical items, such as tokenization. Many fashion and gaming companies are showing great interest in this technology because it helps them gather valuable insights and strengthen their user communities.
Stankiya further highlighted the growth of Kraken and the changing crypto landscape.
“Crypto has matured significantly over the past twelve years. We now operate in 190 countries, offering over 200 tokens for trading. Safety, security and regulatory compliance in the industry have improved significantly,” he said.
Blockchain in Payments and Banking
The conversation then turned to the practical applications of blockchain in payments. Craddock explained how cross-border payments have become faster and more efficient.
“It’s faster to send money by plane to Australia than to send an international transfer. Blockchain technology solves this inefficiency,” Craddock said.
Stankiya highlighted Kraken’s role in facilitating large-scale transactions. He explained that institutional clients have a growing demand for instant movement of large sums of money around the world, and the safety and security provided by centralized exchanges is paramount to meeting this demand.
Surpateanu also provided a critical perspective on the integration of banks with blockchain.
“Banks could do more to integrate into this ecosystem. While there are talented, expert crypto teams within banks, regulatory concerns and a compliance-focused mentality often hold them back,” she said.