A quick look at crypto prices will also help reveal how the financial sector and other industries are turning to this technology. Take the BTC price, for instance. According to today’s (18/11/2025) Binance’s data, this token, which was just a few cents during its launch, now peaks at $91.4453.4. Remember, when demand for crypto-based technologies increases, it puts pressure on their supply, which may result in significant upward price movements. And since numerous sectors, including banking, have opened their doors to digital currencies, it makes sense to see crypto’s value trajectory climbing.
One of the blockchain’s innovations you may have encountered in the finance sector is CBDCs. These digital versions of regular money have become common ways for governments and financial institutions to modernize payments and test the waters of fully digital banking ecosystems. Notably, the Atlantic Council says 137 countries and currency unions are exploring a CBDC.
Making payments seamless and faster
If you’ve ever sent money overseas, you know how painfully slow traditional cross-border payments can be. On average, a standard international transfer can take two to five business days, and fees can add up quickly due to intermediaries sitting between sender and receiver. For small businesses, such instances can be quite frustrating. Unfortunately, even with modern banking networks, delays and high fees remain a major pain point.
Imagine, according to RTGS Global, hidden currency costs can increase transaction costs by up to 20-30% due to limited foreign exchange access. At a time when operational costs are becoming super expensive, these are not losses you want to incur. The world is also quickly shifting to instant transactions. Just recently, Juniper Research released a report claiming that the real-time payment market size could balloon by 161% within the next few years.
If that’s not enough, Testlio says slowing down transactions could reduce conversion rates by 20%. Given such statistics, it shouldn’t be surprising that even the banking sector is quickly opening up to technologies supporting faster transfers. And as Yahoo Finance notes, over 300 financial institutions worldwide have experimented with or adopted blockchain for payments.
Reinventing trust and compliance
Among the things that keep most financial institutions up at night is security and compliance. Each year, these institutions spend billions on compliance and anti-money laundering processes. In some regions, cumulative yearly compliance costs can actually surpass $200 billion, says Fintech Global. And with the regulatory environment in different jurisdictions changing every now and then, banks are under constant pressure to stay ahead.
This is where the distributed ledger technology steps in to help. Its immutable ledger creates a single source of truth, where everyone can see transactions. And by permanently recording the transactions, this technology simplifies audits and makes regulatory reporting far more efficient. Suppose a bank needs to check whether a transaction conducted six months ago fits into a customer’s normal activity pattern. Instead of sifting through siloed systems or requesting documents from multiple departments, auditors can access a tamper-proof ledger with complete transparency. This saves time as well as reducing the risk of human error, something regulators are increasingly focused on.
Mark you: fraudulent activities are quickly becoming more frequent. A recent Veriff report noted that fraud within financial services surged by 21% between 2024 and 2025 alone. Customers are becoming increasingly aware of these cybersecurity trends; no wonder they only want to do business with organizations that prioritize their security. Thankfully, blockchain’s improved transparency can help appeal to these preferences.
Some banks even go the extra mile to incorporate blockchain-based digital identities to streamline Know Your Customer (KYC) processes. Normally, when you open a bank account, you always need to provide ID documents and wait for verification. And if you’re signing up for another service, you’d need to repeat the process. But with blockchain, users could maintain a single identity that can be shared with permission across institutions.
The role of decentralized finance (DeFi)
According to crypto exchange Binance, “DeFi lending protocols have experienced substantial growth in 2025, with total value locked (TVL) increasing by approximately 72%. Aave maintains its market leadership, representing 54% of the TVL, while Maple and Euler have each expanded rapidly to approximately US$3 billion.” Such statistics perfectly reveal how the distributed ledger technology is quickly changing asset management.
Traditional lending is no longer the only route for borrowers. With DeFi, you can now access peer-to-peer lending and instant verification without worrying about delays associated with conventional loans. Worldwide, the DeFi market could jump from $30.06 billion to $ 648.43 billion by 2032, reports SkyQuest Technology.
Considering these statistics, it’s only logical to conclude that blockchain is no longer a fringe technology in banking. It is quickly becoming the foundation upon which users can enjoy faster and cheaper transactions. At a time when financial services are under pressure to align with shifting regulatory frameworks, this technology can also be handy. And when it comes to improving access to loans, blockchain is breaking down barriers and making borrowing more inclusive than ever before. With these factors in mind, it makes sense for institutions to expect the banking sector to welcome this technology even more.
