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Traditional financial institutions need to 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 emerging market security implications.
All speakers agreed on the importance of the merger traditional finance (TradFi) with blockchain technology to understand its broader impact and the future of blockchain.
Surpateanu noted: “Blockchain helps optimize and attract consumers to creative industries. The coexistence of TradFi and blockchain is already a reality and will continue to evolve.”
During Money20/20, speakers highlighted the importance of interoperabilityand Surpateanu echoed this sentiment by stating that interoperability prevents fragmentation in blockchains and promotes innovation.
Speakers cited the need for centralized exchanges as a way to secure platforms for retail and institutional customers to interact with cryptocurrencies.
A challenging year for blockchain technology
Reflecting on the past year, the panel delved into the substantial growth of the cryptocurrency market, particularly in blockchain market.
“In 2017, when I joined Citigroup, the mantra was ‘blockchain, not cryptocurrencies.’ Since then, the focus has shifted back to infrastructure,” Surpateanu said. “We are now talking about a cryptocurrency market capitalization above $2.6 trillion.”
Surpateanu focuses on developing technology that validates and authenticates data across different blockchain layers, allowing users to exchange digital objects for physical objects, such as tokenization. Many fashion and gaming companies are showing great interest in this technology as it helps them gather valuable information and strengthen their user communities.
Sthankiya further highlighted Kraken’s growth and the evolving cryptocurrency landscape.
“Cryptocurrencies have matured significantly over the last twelve years. We now operate in 190 countries, offering over 200 tokens for trading. Safety, security and regulatory compliance in the industry have significantly improved,” she said.
Blockchain in payments and banking
The conversation then moved on 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 to Australia than to send an international transfer. Blockchain technology solves this inefficiency,” Craddock said.
Sthankiya highlighted Kraken’s role in facilitating large-scale transactions. She explained that institutional clients have a growing demand for the instant movement of large amounts of money around the world, and the safety and security provided by centralized exchanges is critical to meeting this demand.
Surpateanu also provided a critical perspective on integrating banks with blockchain.
“Banks could do more to integrate into this ecosystem. While there are talented cryptocurrency-savvy teams within banks, regulatory concerns and a compliance-driven mindset often hold them back,” she said.