Blockchain executives from Wall Street discuss the conditions and methods for cryptocurrency adoption in traditional finance.
Cryptocurrency and blockchain technology are on the brink of transformative change. New regulations in Europe and former U.S. President Trump’s pro-crypto stance have created favorable conditions for major financial institutions to explore this asset class.
Senior leaders in traditional finance are now closely evaluating the opportunities and challenges presented by digital assets. Here’s what top executives had to say when asked:
What is the single most important change needed to drive widespread adoption of blockchain and crypto assets in traditional finance? Why?
Key Insights from Industry Leaders
1. Naveen Mallela, Global Co-Head of JPMorgan’s Blockchain Platform Kinexys
- Clearer regulations, industry collaboration, and public-private partnerships are critical for scaling digital assets.
- JPMorgan’s Kinexys processes over $2 billion daily in blockchain-based payments.
2. Caroline Butler, Global Head of Digital Assets at BNY Mellon
- Interoperable institutional infrastructure bridging blockchain and traditional finance will accelerate adoption.
- BNY Mellon is a key custodian for U.S. crypto ETFs and tokenized funds like BlackRock’s BUIDL.
3. Mike O’Reilly, President of Fidelity Digital Assets
- Education gaps must be addressed to drive institutional crypto adoption.
- Fidelity offers Bitcoin, Ethereum, and Litecoin custody and trading for institutions.
4. John O’Neill, Head of Digital Assets at HSBC
- Tokenized deposits and secure digital currencies will speed adoption.
- HSBC’s Orion platform has issued multiple digital bonds, including a $1 billion HKD bond.
5. Robert Mitchnick, Digital Assets Lead at BlackRock
- Public blockchains outperform private ones in innovation and adoption.
- BlackRock’s Bitcoin ETF surpassed $50B AUM in record time.
6. Jean-Marc Stenger, CEO of Société Générale’s FORGE
- U.S. regulatory shifts and Europe’s MiCA framework create opportunities.
- FORGE launched EURCV, the first euro-denominated stablecoin by a major bank.
7. John Whelan, Digital Assets Lead at Santander
- Traditional finance needs regulatory approval to use public blockchains, where true innovation happens.
8. Laurence Arnold, Global Innovation Lead at AXA Investment Managers
- Digital currencies with legal tender status are essential for settlement.
- AXA participates in ECB’s CBDC trials and blockchain-based bond investments.
9. Artem Korenyuk, Digital Assets Head at Citi
- Clear U.S. regulations will protect investors and integrate crypto safely.
- Citi’s Token Services enable blockchain-based corporate payments.
10. Jez Mohideen, CEO of Laser Digital (Nomura)
- Targeted education is needed to distinguish crypto, Web3, and tokenization benefits.
- Laser Digital offers trading, custody, and venture investments in digital assets.
11. Julian Sawyer, CEO of Zodia Custody (Standard Chartered)
- Global governance frameworks like the Travel Rule are necessary for institutional adoption.
12. Jorgen Ouaknine, Digital Assets Lead at Euroclear
- Standardization is key for scaling blockchain in finance, as seen in past tech revolutions.
13. Nadine Chakar, Digital Assets Lead at DTCC
- Industry-wide collaboration is critical to deploy tokenized assets at scale.
- DTCC’s blockchain sandbox fosters infrastructure development.
14. Sandy Kaul, Digital Assets Lead at Franklin Templeton
- Proactive U.S. regulatory support for public blockchains will merge traditional and crypto markets.
15. Hyder Jaffrey, Strategic Investments Lead at UBS
- Clarity on compliance standards is essential for digital asset integration.
FAQ: Cryptocurrency Adoption in Traditional Finance
Q1: What’s the biggest barrier to institutional crypto adoption?
A: Lack of regulatory clarity and expertise, according to executives like Jez Mohideen (Laser Digital) and Mike O’Reilly (Fidelity).
Q2: How can blockchain bridge traditional and crypto finance?
A: Interoperable infrastructure (BNY Mellon), tokenized deposits (HSBC), and public blockchain adoption (BlackRock) are top solutions.
Q3: Why is 2025 pivotal for crypto adoption?
A: MiCA regulations in Europe and potential U.S. policy shifts create a "window of opportunity," per Jean-Marc Stenger (Société Générale).
Q4: What role do stablecoins play?
A: They offer a compliant bridge between fiat and crypto, exemplified by EURCV (FORGE) and institutional demand for BUIDL (BlackRock).
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