In an intriguing twist that’s stirring conversations across financial sectors, Stani Kulechov, the founder of Aave Labs, has suggested that traditional finance might soon pivot toward blockchain technology, citing “horrible banking experiences” as a key driver. As of July 2025, this perspective comes at a time when fintech innovation is already luring many away from conventional banking, potentially setting the stage for blockchain to take the helm.
The Allure of Blockchain
Kulechov’s comments highlight a growing sentiment within the financial world: dissatisfaction with traditional banking has reached a tipping point. “The inefficiencies and frustrations people face with banks are pushing them to explore alternative solutions,” he noted. In his view, fintech has merely scratched the surface, and blockchain might hold the key to unlocking the future of finance.
Blockchain technology, with its promise of transparency, security, and decentralization, offers a tantalizing alternative to the traditional banking model. Unlike the often opaque operations of banks, blockchain provides a ledger that is not only public but also immutable. This could be a game-changer for industries tired of the opaqueness and sluggishness that often characterize traditional banks. As explored in our recent coverage of DeFi Development Corp’s move to go onchain via Kraken, the shift towards blockchain is gaining momentum.
Interestingly, the trust factor plays a crucial role here. Post-2023, several high-profile bank failures and scandals have left a bad taste in the mouth of consumers and corporations alike. Blockchain, in contrast, offers a decentralized approach that many believe could restore trust in financial transactions.
Fintech’s Role in the Transition
Kulechov’s assertion isn’t without precedent. Fintech has already begun bridging the gap between traditional finance and digital innovation. Platforms like PayPal and Stripe have made significant inroads by offering services that are faster, more efficient, and often cheaper than those provided by traditional banks. But as Kulechov suggests, fintech could just be the precursor to blockchain’s broader adoption.
But here’s the catch: The transition from fintech to blockchain won’t be seamless. It requires overcoming regulatory hurdles and addressing scalability issues that have plagued blockchain since its inception. Yet, the financial incentives are significant enough that these challenges appear to be surmountable.
Blockchain’s ability to integrate with or even enhance fintech solutions is already visible. Some companies are combining fintech services with blockchain’s capabilities to offer unique, hybrid solutions that further erode the traditional banking model. According to industry insiders, this hybrid model could very well dictate the next phase of financial evolution. For instance, SoFi’s launch of blockchain remittances with stablecoins exemplifies how fintech and blockchain are converging to create new financial paradigms.
A Speculative Future
The potential shift toward blockchain raises intriguing questions about the future of financial markets. It seems plausible that as blockchain technology matures, we could see entire sectors of traditional finance migrating onto decentralized platforms. This transition, however, is not guaranteed. As with any technological advancement, there are skeptics.
Critics argue that blockchain’s scalability and energy consumption issues are significant obstacles that need resolution before it can become a mainstream financial solution. Moreover, regulatory environments worldwide are still catching up with the rapid pace of blockchain innovation. Without clear regulations, widespread adoption remains uncertain.
Yet, for enthusiasts and innovators like Kulechov, these challenges are not deterrents but rather hurdles to be overcome. The conversation around blockchain in finance is not just about technology—it’s about creating a more efficient, transparent, and trustworthy financial ecosystem.
Looking ahead, the unresolved questions will likely shape the narrative: Will regulatory frameworks evolve to accommodate blockchain’s potential? Can blockchain truly deliver on its promise of scalability and efficiency? The answers could redefine the financial landscape as we know it.
As the days roll on, one thing seems clear: the intersection of traditional finance, fintech, and blockchain is a space to watch closely. Whether this convergence will revolutionize finance or simply become another chapter in its ongoing evolution remains an open question. But in an industry rife with change, betting on blockchain might just be a gamble worth taking.
Source
This article is based on: TradFi could move onchain due to ‘horrible banking experiences’
Further Reading
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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.
