At Bitpace, we’re seeing first-hand how financial infrastructure is evolving. This article explores how technology is not replacing traditional finance (TradFi) – it’s reinforcing it. Here’s what’s happening globally.
Finance is undergoing a significant transformation as TradFi institutions increasingly integrate modern technologies. The convergence of these two worlds is redefining how businesses and consumers engage with financial services and pushing the boundaries of what can be done, making transactions faster and more cost-effective. From blockchain-powered payments and tokenised assets to open banking and embedded finance, TradFi is adopting tech to create a more efficient, transparent, and inclusive financial ecosystem.
The power of collaboration
Major banks, fintech startups, and blockchain firms all over the world are embracing this shift. By incorporating tech innovations into legacy systems, financial institutions are enhancing liquidity, streamlining asset management, and revolutionising cross-border settlements.
Let’s explore real-world examples of how TradFi and tech are collaborating across different regions to meet the specific needs of their customers.
Europe: Modernising traditional finance
Deutsche Bank has taken a major step into the digital asset space by partnering with Taurus, a leading digital asset infrastructure provider. This collaboration enables Deutsche Bank to offer crypto custody and tokenisation services, generating a new revenue stream while helping clients securely manage their digital assets. It marks a strategic move toward incorporating digital asset solutions within a regulated banking framework.
Similarly, NatWest Group’s fintech arm, NatWest Boxed, has teamed up with Vodeno, a European Banking-as-a-Service (BaaS) provider, to offer embedded financial services, bringing the potential for a higher lifetime value of customers. In February 2025, NatWest Boxed secured its first customer, the AA motoring organisation, providing savings accounts and personal loans. This partnership allows non-bank companies to integrate neobanking solutions into their financial offerings under their own branding.
Asia: Driving cross-border innovation
One of the most ambitious projects bridging tech and TradFi is mBridge, a collaboration between the Hong Kong Monetary Authority, the Bank of Thailand, the Central Bank of the United Arab Emirates, and the People’s Bank of China. This initiative aims to develop a multiple central bank digital currency (CBDC) platform to facilitate real-time, peer-to-peer cross-border payments using blockchain technology, reducing the reliance on intermediaries and speeding up settlement times. It demonstrates how central banks are exploring tech solutions to enhance international financial systems.
However, enthusiasm around CBDCs should be tempered by real-world challenges. For example, Nigeria’s eNaira project has struggled with low adoption rates and limited public trust, highlighting that even well-intentioned CBDC initiatives can face significant hurdles in practice.
Latin America: Expanding financial access
In Latin America, fintech companies are playing a crucial role in merging digital and traditional finance. In September 2024, MercadoLibre secured a $250 millionfinancing deal with JPMorgan to expand its fintech arm, Mercado Pago, in Mexico. This collaboration strengthens Mercado Pago’s credit offerings, giving small and medium-sized enterprises better access to financing and boosting the economy.
Additionally, Nubank, a leading Brazilian digital lender, has partnered with Mexican convenience store chain Oxxo to enhance its cash deposit and withdrawal network. This move expands Nubank’s physical footprint, allowing customers to access financial services through mobile apps, digital wallets, and embedded finance platforms at over 22,000 Oxxo stores, effectively blending digital banking with traditional cash-based transactions.
The future of finance is hybrid
Integrating tech into traditional banking is not just a passing trend – it is shaping the next generation of financial infrastructure. By leveraging blockchain’s ability to provide real-time settlement, reduce fraud through tamper-proof records, and automate compliance using smart contracts, financial institutions are reducing inefficiencies while expanding access to digital assets such as stablecoins and tokenised solutions. Whether through tokenised bonds in Europe, blockchain-based banking solutions in Japan, or alternative credit models in Latin America, financial innovation is gaining momentum.
As regulations such as MiCA in EU, MAS in Asia, CVM in Brazil, and Mexico’s Fintech Law evolve and technology matures, businesses and consumers alike will benefit from a financial landscape where transactions are not only faster but also more transparent and inclusive. With the frameworks come more regulations and potentially tighter and more stringent rules and procedures, and while being a force for good, they could also slow development and innovation.
The future of finance is hybrid – where modern technologies like APIs and blockchain systems are integrated into traditional banking infrastructure to redefine the way we transact.
Can Taner, Chief Product Officer at Bitpace