In the ever-evolving world of finance, the potential of blockchain technology is becoming increasingly evident, offering a transformative solution for both financial institutions and the billions of unbanked individuals worldwide. As traditional financial systems grapple with inefficiencies and rising costs, blockchain emerges as a beacon of hope, promising enhanced speed, scalability, and accessibility.
The Institutional Awakening
The financial landscape is undergoing a paradigm shift as major institutions like Franklin Templeton, BlackRock, Fidelity, and JPMorgan recognize the immense benefits of blockchain. Recently, Franklin Templeton made headlines by launching its first-ever tokenized money market fund, slashing transaction costs from $1 to less than a penny. For an entity managing $1.7 trillion, this efficiency is not just advantageous—it’s revolutionary.
But the impact of blockchain on institutions transcends mere cost-cutting. It validates a robust infrastructure capable of serving both boardrooms and communities traditionally excluded from financial systems. For instance, while Franklin Templeton leverages blockchain for asset management, other organizations, like the United Nations Refugee Agency, use it to distribute aid directly to those in need, bypassing traditional intermediaries.
Bridging the Gap for the Unbanked
On the other end of the spectrum, blockchain is a game-changer for the 1.4 billion people who remain unbanked. Remittances, vital for many families, often come with hefty fees, sometimes exceeding 10%. Blockchain technology can reduce these costs significantly. Imagine a domestic worker in Dubai sending money to family in the Philippines with fees reduced to mere cents and transactions completed in seconds rather than days.
Real-world examples, like the situation in Argentina, highlight blockchain’s dual utility. With inflation soaring to 236.7% in 2024, both institutions and individuals in Argentina have turned to digital assets as a means of economic survival. Data indicates that 61.8% of the country’s crypto transactions now involve stablecoins, not for speculation but as a vital tool to preserve purchasing power against the devaluing peso.
A Convergence of Needs
The beauty of blockchain lies in its ability to serve both institutional and individual needs using the same infrastructure. Networks that allow pension funds to tokenize assets can simultaneously enable farmers to access credit. The technology facilitating institutional settlements can also deliver humanitarian aid directly to refugees without delay.
Yet, realizing blockchain’s full potential requires intentional design and collaboration. Systems need to be user-friendly for both sophisticated institutional treasurers and first-time users. Compliance frameworks must balance regulatory requirements with accessibility for underserved populations.
The Path Forward
Partnerships are crucial to building a robust ecosystem that caters to both ends of the financial spectrum. Collaborations with mobile money operators, community organizations, and fintech companies are essential to extend blockchain’s reach to those who need it most. The aim isn’t to choose between efficiency and equity but to achieve both.
As blockchain adoption accelerates, the challenge lies in ensuring that institutional advancements bolster rather than hinder financial inclusion. Systems should be designed to leverage institutional resources to expand access rather than erect new barriers. It’s about creating bridges that connect everyone to the global economy.
The infrastructure for seamless, borderless transactions is ready. Regulatory frameworks are evolving, and institutional adoption is gaining pace. Success will be measured not just by efficiency gains but by how many new participants we can integrate into the economic fold.
The choices made today will determine whether blockchain becomes another tool serving the already-served or a true bridge connecting everyone to the global economy. Both institutions and the unbanked are counting on us to get this right, and the stakes couldn’t be higher.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
