However, we are now seeing a significant change in this dynamic. Several major banks such as Goldman Sachs, JP Morgan and Société Générale are stepping up their experiments in this area. Tokenisation, which transforms traditional assets into digital tokens, is attracting more and more interest, while the banking system has been facing constant environmental challenges for years. At the same time, gold and crypto-currencies, once seen as antagonistic, are now forging unexpected links , a perfect illustration of this changing mindset.
In this article, we will analyse the complex relationship between blockchain and traditional finance, examine existing friction points and explore the opportunities for collaboration that are emerging despite regulatory hurdles. We will see how this technology could fundamentally transform our financial system rather than replace it.
Traditional finance vs. blockchain: a historic clash?
The emergence of blockchain in 2008, in the wake of the global financial crisis, quickly created a climate of tension with the traditional banking system. This new technology, initially designed to create a financial asset managed by an algorithm without the intervention of a central authority, posed a fundamental challenge to the very foundations of the financial sector.
Banks' initial mistrust
Financial institutions initially considered the blockchain finance as a direct threat to their business model. Indeed, this technology calls into question their role as trusted intermediaries in financial transactions. Blockchain allows users to free themselves from intermediaries such as banks, clearing houses and custodians. [1]. This decentralisation poses a challenge direct to banks, which now have to rethink their business model to remain relevant [2].
The reasons for institutional resistance
There are several reasons for this resistance. Firstly, the "Know your customer" regulation, which is mandatory in the banking sector, does not exist on a public blockchain, creating risks of terrorist financing or money laundering. [1]. In addition, the extreme volatility of crypto-currencies makes them unsuitable as a means of payment [3].
The libertarian concepts associated with blockchain banking (decentralisation, freedom of access, transparency, anonymity) are in direct opposition to the core of centralised intermediated finance, based on the responsibility of players and the confidentiality of transactions. [3]. The Autorité de contrôle prudentiel et de résolution considers that these principles pose major economic challenges to the traditional banking infrastructure.
The impact of crypto-currencies on banking perceptions
The 2008 crisis led to a widespread loss of confidence in financial institutions [4]. This mistrust has encouraged the emergence of crypto-assets, provoking what some describe as a "currency war" between official and private currencies. [5].
However, in the face of this competition blockchain banks are gradually evolving. They are now investing massively in financial technology to remain competitive, developing more efficient applications and exploring the possibilities offered by blockchain. [6]. Some banks are even prepared to integrate this technology into their own systems to facilitate certain processes. [3].
We are seeing a gradual change in attitude, from frontal opposition to a cautious exploration of the possibilities for coexistence.
Friction points between the two worlds
Despite the banking sector's growing interest in blockchain, a number of obstacles remain in this complex relationship. These points of friction represent challenges that must be overcome if these two worlds are to converge.
Regulations and compliance
The regulation of crypto-currencies is still a work in progress, unlike the well-established framework of traditional finance [7]. This situation creates a fragmented regulatory environment that varies considerably from one country to another [7]. In Europe, the MiCA regulation (Markets in Crypto-Assets), which will apply from 2024, aims to harmonise this framework. [8]. Nonetheless, traditional financial institutions remain cautious about the legal risks, particularly with regard to the fight against money laundering and the financing of terrorism. [7].
Volatility of crypto-assets
The high volatility of first-generation crypto-assets is a major obstacle to their adoption by traditional players [8]. The 24-hour trading volume reached around 82 billion euros in the second half of 2022 despite the fall in the markets. [7]. The stablecoins were created to solve this volatility problem, but raise other concerns related to the management of reserves [8]. The lack of transparency in the composition and liquidity of these reserves represents a significant risk. [9].
Decentralisation versus centralisation
Decentralised finance (DeFi) and the traditional banking system are based on fundamentally opposed principles [10]. On the one hand blockchain banking advocates transparency, immutability of the code and the absence of intermediaries [11]. On the other hand, traditional finance relies on trusted intermediaries and the confidentiality of transactions. Moreover, decentralisation is not uniform across the blockchain ecosystem - it varies considerably depending on the protocols and applications. [12].
Risks perceived by traditional players
Financial institutions are particularly concerned about security aspects, with DeFi-related hacking reaching 156 million between January and April 2021 [13]. In addition, stablecoins create interconnections with traditional capital markets, generating new systemic risks. [8]. Sudden movements in this market could have repercussions on overall financing conditions and trigger a cascade of reactions. [8]. Finally, the potential erosion of the bank deposit base represents a threat to the traditional business model. [14].
Towards collaboration: concrete use cases
Beyond the historical tensions, concrete collaborations are now emerging between the blockchain finance and the traditional banking system. These synergies, far from being anecdotal, reveal a potential for profound transformation of the sector.
Tokenisation of financial assets
La transformation of traditional assets (real estate, works of art, bonds) in digital tokens represents a major innovation. This blockchain stock exchange allows previously indivisible assets to be split up, democratising access to investments. In addition, transactions can be automated via intelligent contracts, considerably reducing administrative costs while speeding up processes.
Faster cross-border payments
Traditional international transfers, which are often costly and slow, are being transformed thanks to blockchain. This technology makes it possible to make near-instantaneous transactions at lower cost, even between different currencies. Many banks are already experimenting with these solutions to modernise their ageing infrastructures.
Banking blockchain: examples of integration
Several financial institutions are developing their own blockchain systems. Some blockchain banks are using this technology to automate their internal processes, in particular for KYC (Know Your Customer) verification and interbank clearing. Others are integrating it into their corporate services to optimise cash management and transaction traceability.
Stock market blockchain: towards a new infrastructure
Stock markets are gradually adopting this technology to reinvent their infrastructures. Blockchain now enables transactions to be executed and settled in real time, eliminating the need for clearing houses. This development could considerably reduce systemic risks while improving the transparency of financial markets.
What are the challenges for a lasting alliance?
To make the convergence between blockchain finance and traditional institutions, a number of structural challenges need to be overcome. These obstacles will determine the viability of a long-term alliance between these still disparate worlds.
Systems interoperability
One of the main technical obstacles lies in the interconnection between different banking systems and blockchain platforms. Current payment ecosystems are fragmented and often compartmentalised, requiring interoperability solutions to make cross-border transactions more fluid. [15]. Banks generally use legacy infrastructures that are incompatible with blockchain technologies, requiring considerable investment to modernise them. [1]. This technical divide is particularly visible in international payments, where the adoption of standards such as ISO 20022 by November 2025 could revolutionise financial data management [15].
Legal frameworks still unclear
The integration of blockchain technologies into the financial sector also raises complex legal issues. Current legislation, designed for a centralised system, has difficulty adapting to the decentralised nature of blockchains. [3]. This mismatch creates a fragmented and uncertain regulatory landscape, despite advances such as the PACTE Act in France and the European MICA regulation applicable in 2025. [16]. Regulators must strike a delicate balance between innovation and protecting economic players [3].
Training and transformation of banking professions
Finally, the blockchain banking is profoundly transforming the skills required in the sector. According to a study, 85% back office operations can be automated using new technologies [17]. At the same time, blockchain could enable financial institutions to save up to €20 billion annually by 2022. [17]. This development is threatening certain traditional jobs while creating new professions such as "megadata expert" or "data security manager". [17]. Training in the technical aspects of blockchains is therefore becoming crucial for professionals in the sector. [3].
Conclusion
The relationship between blockchain and traditional finance is clearly evolving from one of head-on opposition to one of cautious but promising collaboration. This paradigm shift reflects the growing maturity of the two sectors, which are now able to recognise each other's strengths and weaknesses. So, rather than being mutually exclusive, these technologies seem destined to complement each other.
Initiatives to tokenise financial assets and improve cross-border payments are already demonstrating the tangible benefits of this nascent alliance. However, major challenges remain - technical interoperability, adapting legal frameworks and transforming banking businesses will require considerable effort.
Ultimately, we are witnessing not so much a destructive revolution as a transformative evolution of the financial system. This emerging symbiosis could enhance the efficiency and accessibility of financial services while preserving the stability necessary for the global economy. What's more, this convergence paves the way for innovations that neither blockchain nor traditional finance could develop in isolation.
The next few years will certainly be decisive in determining the breadth and depth of this alliance. If you would like to find out more about these issues and discover a concrete application, we invite you to learn more about our DRVL token project and visit the platform dedicated to this project. here. This initiative is a perfect example of how blockchain can be seamlessly integrated into the existing financial ecosystem.
FAQs
Q1. What are the main advantages of blockchain over traditional finance? Blockchain offers faster and cheaper transactions, greater transparency and greater accessibility to financial services. It also enables assets to be tokenised, making them easier to split up and exchange.
Q2. How are traditional banks adapting to the emergence of blockchain? Banks are increasingly investing in blockchain technology, developing their own systems to automate certain internal processes, improve cash management and optimise cross-border payments.
Q3. What are the main challenges in integrating blockchain into today's financial system? The main challenges include the interoperability of systems, the adaptation of existing legal frameworks and the need to train banking staff in the new technologies. The volatility of crypto-assets and security issues also remain major concerns.
Q4. Will blockchain completely replace the traditional banking system? It is unlikely that blockchain will entirely replace the traditional banking system. Instead, there is a trend towards collaboration and complementarity between the two systems, each bringing its own strengths to improve the overall efficiency of the financial sector.
Q5. How is the tokenisation of financial assets transforming the market? Tokenisation allows traditionally indivisible assets to be split up, democratising access to investments. It also facilitates the automation of transactions via smart contracts, reducing administrative costs and speeding up exchange and settlement processes.
References
[1] – https://www.babyloneconsulting.fr/nos-articles/blockchain-bancaire-optimiser-les-processus-internes-pour-plus-de-securite/
[2] – https://www.babyloneconsulting.fr/nos-articles/banques-et-crypto-monnaies-strategies-dadoption/
[3] – https://www.fopenitentiaire.fr/les-implications-juridiques-de-lutilisation-des-blockchains-dans-la-finance/
[4] – https://www.vnca.fr/emergence-des-cryptomonnaies-nos-publications-vnca-consulting/
[5] – https://www.melchior.fr/note-de-lecture/crypto-actifs-une-menace-pour-l-ordre-monetaire-et-financier
[6] – https://www.avocats-emergence.fr/limpact-des-cryptomonnaies-sur-le-secteur-bancaire/
[7] – https://www.pwc.ch/fr/centre-de-presse/les-banques-traditionelles-sous-estiment-les-risques-lies-aux-actifs-numeriques.html
[8] – https://www.banque-france.fr/fr/publications-et-statistiques/publications/crypto-actifs-et-stable-coins
[9] – https://www.tresor.economie.gouv.fr/Articles/fd93c09f-4610-4dd4-bec2-50333afe4bde/files/82327107-08b9-4347-b16b-46f251fe3a1f
[10] – https://acpr.banque-france.fr/fr/publications-et-statistiques/publications/finance-decentralisee-ou-desintermediee-quelle-reponse-reglementaire
[11] – https://blockchainaddict.fr/decentralisation-vs-centralisation-les-avantages-du-web3/
[12] – https://www.adan.eu/publication/la-defi-50-nuances-de-decentralisation-2/
[13] – https://sbs-software.com/fr/insights/banks-vs-decentralized-finance/
[14] – https://www.lafinancepourtous.com/2025/08/14/pourquoi-les-stablecoins-inquietent-les-banques-centrales/
[15] – https://convera.com/fr/blog/payments/is-interoperability-key-to-enhancing-b2b-payments-across-borders/
[16] – https://www.hbrfrance.fr/innovation/comment-la-blockchain-revolutionne-la-finance-61051
[17] – https://www.agefi.fr/news/banque-assurance/les-metiers-bancaires-seront-plus-automatises-et-personnalises-en-2025?cmpscreen
