Blockchain is poised to underpin more and more financial transactions, as the traditional finance world (TradFi) starts to embrace decentralized finance (DeFi), opening them up to cryptocurrency transactions and more. The World Economic Forum predicts that by 2027, 10% of global GDP could be tokenized (where assets of value are represented by digital tokens) and stored on blockchain.
Blockchain creates an immutable digital ledger of transactions recorded across multiple computer networks and systems, with each transaction forming a block in the chain.
Since records are encrypted and time-stamped, and with its real-time finance tracking capabilities among the other benefits, blockchain will play an important role in fraud prevention, from assisting with anti-money laundering efforts to flagging suspicious transactions.
Blockchain also allows for the integration of smart contracts (self-executing, self-verifying contracts with controls and compliance embedded) into the financial ecosystem, thereby streamlining processes such as KYC and making them more robust.
Here, several experts in the field predict the next moves for the technology in 2025:
The growing importance of chain of trust: In 2025, as businesses increasingly build applications that integrate AI models across their operations, establishing a robust chain of trust between multiple parties will become essential. This chain must ensure regulatory compliance, transparently validate AI data, and enhance explainability for AI-driven outcomes–key factors for earning trust in AI systems.
Distributed ledger technology (DLT) has already demonstrated its value in creating such chains of trust in highly regulated industries like financial services, supply chain logistics, and food safety. Its ability to provide multi-party access while recording data in a time-stamped, tamper-proof manner makes it a natural fit for addressing these challenges.
By leveraging proven DLT solutions, businesses can address many of the trust and transparency concerns surrounding AI. In fact, I anticipate the convergence of DLT and AI will accelerate in 2025 as companies increasingly recognize the need to embed trust and accountability into their AI systems from the ground up.—Greg Whalen, CTO of Prove AI
Blockchain will contribute to security issues: The increased use of blockchain technology will bring about new security challenges, particularly with smart contracts. The possibility of these contracts being hacked will necessitate robust security measures and innovative solutions to protect blockchain-based systems.—Alessia Oliveri, product manager at NCC Group
Open banking and blockchain will drive a new era of financial transparency, empowering tech companies to lead with data-driven insights: The financial sector is on the brink of a big shift. With the Consumer Financial Protection Bureau’s new open banking rule, financial institutions will have to give consumers free access to their own data, bringing the U.S. closer to global standards. For tech companies, this means a chance to build more transparent, interconnected systems and deliver the real-time insights clients need to make smarter decisions. It’s a big opportunity to leverage advanced analytics for fraud detection, predictive modeling, and deeper financial insights that drive value across industries.
Blockchain will be another game-changer here, providing unmatched transparency, accuracy, and security for shared financial data. By combining open banking with blockchain, tech companies can offer next-level solutions that make data sharing seamless, secure, and highly reliable. This approach goes beyond meeting regulations—it sets a new bar for accountability and trust. There’s no question businesses will migrate to platforms that embrace open banking and blockchain as they realize the power of these tools. The tech firms that seize this opportunity will lead the pack, redefining what’s possible in financial services.—Adam Riches, CEO and founder, Netgain