---
title: "Banking on blockchain: How TradFi and Fintech are racing to embrace crypto"
description: "Discover why top financial institutions and fintechs are adopting crypto—fast. This playbook breaks down the strategies, opportunities, and infrastructure needed to build crypto products at scale, with Alchemy as your enterprise-grade partner."
---

# Banking on blockchain: How TradFi and Fintech are racing to embrace crypto

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The [financial sector](/fintech) is at the beginning of a crypto revolution. Blockchain technologies have moved from niche to mainstream, with a global $2.7 trillion crypto market cap and $5.28 trillion in stablecoin transactions settled in 2024. Leading financial services companies are taking notice.

BlackRock CEO Larry Fink declared, _“The next generation for markets… will be tokenization of securities,”_ while Charles Schwab CEO Rick Wurster hinted at entering direct crypto trading. Even JPMorgan’s Jamie Dimon, a known skeptic, admitted, _“We use blockchain technology today for certain things… It’s a very efficient way to transfer information or assets securely.”_

The signals are clear: **top financial services teams are already building crypto solutions.**

This blog explores why now is the time for financial institutions, fintechs, and neobanks to embrace crypto, offers specific strategies to pursue, and explains why Alchemy is the trusted, enterprise-grade partner who can help.

## Top institutions are moving into crypto

Top institutions are already executing on crypto strategies, such as:

- **BlackRock** launched a tokenized fund that recently crossed **$1 billion in AUM**, signaling strong demand for real-world asset \(RWA\) tokenization. The fund also announced diversification into Solana.
- **JPMorgan’s Onyx** processes billions of dollars daily using JPM Coin for corporate settlements.
- **Charles Schwab** saw a **400% increase in crypto-related traffic** in 2024 and is preparing to offer direct crypto trading once regulations permit.

Fintechs and neobanks are moving even faster:

- **[Robinhood Wallet](https://www.alchemy.com/dapps/robinhood-wallet)** attracted over **1 million users**.
- **Revolut’s Crypto Hub** saw a **fivefold increase in crypto activity** after integrating crypto features.
- **PayPal’s [PYUSD](https://www.alchemy.com/dapps/paypal-usd) stablecoin** processes billions in volume, generating **over $200 million in annual revenue**.

These moves are driven by compelling factors:

- **Customer demand:** 73% of institutional investors now hold multiple altcoin positions, and interest from retail users continues to grow, according to [Coinbase](https://www.coinbase.com/institutional/research-insights/research/market-intelligence/2025-institutional-investor-survey).
- **New revenue streams:** Trading, staking, custody fees, and stablecoin reserves represent billions in potential revenue.
- **Operational efficiency:** Crypto rails enable 24/7 global payments, instant settlements, and programmable money, cutting costs and reducing friction.
- **Future-proofing:** Tokenization of traditional assets and the growth of DeFi will reshape capital markets. Early movers will capture this opportunity.

## From limitations to innovation: why crypto matters

Traditional financial systems are constrained by inefficiencies that crypto solves:

- **Limited market hours vs. 24/7 markets:** Crypto and tokenized assets trade continuously, offering real-time liquidity.
- **Cross-border friction vs. instant global transfers:** [Stablecoins](https://www.alchemy.com/dapps/top/stablecoins) facilitate near-instant cross-border payments without intermediaries.
- **Centralized control vs. user empowerment:** Self-custodial wallets and decentralized protocols give users greater control over their assets.
- **Slow settlement vs. near-instant finality:** Tokenized assets settle in minutes, reducing counterparty risk and unlocking capital efficiency.

These improvements create a **step-function increase in global financial efficiency** that can drive multi-trillion-dollar growth and greater financial inclusion.

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## Where do we see opportunity in crypto?

We’ve spent years working with early movers adopting crypto solutions, and we’ve never been more bullish on the broad opportunities ahead for every corner of finance to embrace crypto.

Here are **seven** areas where we see tremendous potential for growth:

---

### 1. **Add user-managed wallets**

Empower users with secure, self-custodial wallets that enable them to hold and interact with crypto natively, all [without needing native gas tokens](/gasless-transactions).

**Who’s this for?** Fintechs and neobanks

**Example:** *Robinhood Wallet [attracted over 1 million users](https://newsroom.aboutrobinhood.com/robinhood-wallet-is-now-available-to-all-ios-customers-globally/) by offering this feature.*

---

### 2. **Enable crypto trading**

Keep trades in-house to capture trading revenue and increase user retention.

Who’s this for? Fintechs and neobanks

**Example:** _Revolut’s crypto integration drove a fivefold increase in activity._

---

### 3. **Tokenize your assets**

Tokenize your assets for 24/7 availability, partner transparency, regulatory compliance, and operational efficiency.

**Who’s this for?** Asset owners and managers

**Example:** *Over 24 home equity lenders are tokenizing HELOC loans through Figure, saving basis points on every loan and bringing $500M/month in tokenized loans onchain.*

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### 4. **Offer staking for passive yield**

Allow users to stake assets like ETH and SOL for rewards while earning a share of staking commissions.

Who’s this for? Fintechs, exchanges, and neobanks

**Example:** _Coinbase generated hundreds of millions from staking in 2024—around 15% of total revenue._

---

### 5. **Integrate DeFi for lending**

Tap into decentralized lending protocols to offer high-yield lending and borrowing options.

Who’s this for? Fintechs, banks, and asset managers

**Example:** _MakerDAO, Aave, and [Compound](https://www.alchemy.com/dapps/compound) generated over $700 million in protocol revenue in 2024, with fintechs like SoFi and Lemonade exploring DeFi integrations for yield products._

---

### 6. **Launch a stablecoin**

Issue a fiat-backed stablecoin to monetize treasury interest and enable instant payments.

**Who’s this for?** Fintechs, payment processors, and global brands

**Example:** _PayPal’s PYUSD generated over $200 million in annual revenue, positioning them as a [stablecoin issuer](https://www.alchemy.com/dapps/best/stablecoin-issuers) at scale._

---

### 7. **Launch your own blockchain**

[Create a Layer 2 chain ](/rollups)to own blockspace, capture up to 100% of transaction flow as revenue, and control digital assets.

**Who’s this for?** Exchanges, large fintechs, and financial infra providers

**Example:** *[Coinbase](https://www.alchemy.com/dapps/coinbase)’s [Base chain](/base) expects over $200 million in [annualized revenue](https://blockworks.co/news/base-coinbase-l2-success?) within its first year, showing the power of owning your own infrastructure.*

## The cost of waiting

Delaying crypto adoption carries increasing risks:

- **Competitor momentum:** Early movers are capturing market share and building moats.
- **Exponential user adoption:** Once mainstream adoption hits, laggards will struggle to catch up.
- **New revenue leaving the table: Tether’s $13 billion in 2024 profits** illustrate the missed opportunity... the missed opportunity for traditional financial players.

On the other hand, **adopting crypto early unlocks billions in potential revenue, cost savings, and strategic advantage.** Financial institutions that integrate crypto today will lead tomorrow’s financial landscape.

## How Alchemy connects institutions to crypto

We are a complete, enterprise-grade [**web3 platform**](/). We act as trusted partner to the financial industry at large, enabling companies that are interested in exploring crypto to seamlessly integrate blockchain capabilities while maintaining reliability, security, and compliance.

### Why Alchemy?

We’re the trusted partner for institutions entering crypto, backed by scale, stability, and the infrastructure that powers the world’s leading crypto solutions.

- **Stability**: $500M in raised capital, from top investors like a16z and Charles Schwab.
- **Experience**: Leadership team brings decades of experience from Fortune 100 companies including Meta, Goldman Sachs, Stripe, Twilio, and more.
- **Proven scale: Powering crypto applications for over seven years** with **$1T+ in on-chain transactions** and **99.99% uptime**.
- **Compliance-ready:** SOC 2 Type II certified with robust audit trails, transaction controls, and KYC/AML integrations.
- [**Developer-friendly APIs**](https://dashboard.alchemy.com/?): Enabling seamless integration of wallets, trading, staking, and more, with support from Alchemy’s expert team.

Alchemy bridges the gap between **traditional finance and crypto**, allowing institutions to build crypto offerings without technical complexity or operational risk.

---

**The crypto era is here.** With Alchemy as your partner, your institution can confidently embrace this opportunity, transforming customer experiences, unlocking new revenue streams, and future-proofing your business.

_Ready to explore the future of finance? Contact Alchemy today to learn how we can tailor our crypto solutions to your needs._

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## Frequently asked questions

### What is driving traditional financial institutions to adopt crypto?

Institutions are motivated by strong customer demand (73% of institutional investors hold altcoin positions), new revenue opportunities worth billions (trading, staking, custody fees), operational efficiencies like 24/7 settlement, and the need to future-proof against tokenization reshaping capital markets.

### How are major financial institutions already using crypto?

BlackRock launched a tokenized fund exceeding $1 billion in AUM, JPMorgan's Onyx processes billions daily using JPM Coin for corporate settlements, and Charles Schwab saw 400% increased crypto traffic in 2024 while preparing for direct crypto trading.

### What advantages does crypto offer over traditional financial systems?

Crypto enables 24/7 global markets versus limited trading hours, instant cross-border transfers without intermediaries, near-instant settlement reducing counterparty risk, and user-controlled self-custodial wallets versus centralized systems.

### Can fintechs generate significant revenue from crypto integration?

Yes, PayPal's PYUSD stablecoin generates over $200 million in annual revenue, Coinbase earned around 15% of total revenue from staking in 2024, and Coinbase's Base chain expects over $200 million in annualized revenue within its first year.

### What specific crypto strategies can financial institutions pursue?

Institutions can add self-custodial wallets, enable in-house crypto trading, tokenize assets for 24/7 availability, offer staking for passive yield, integrate DeFi lending, launch fiat-backed stablecoins, or create their own Layer 2 blockchain.

### How do we support financial institutions entering crypto?

We provide enterprise-grade infrastructure with 99.99% uptime, power $1T+ in on-chain transactions, offer SOC 2 Type II certification for compliance, and deliver developer-friendly APIs for seamless integration of wallets, trading, and staking.

### What are the risks of delaying crypto adoption for financial institutions?

Delays allow competitors to capture market share and build moats, risk missing exponential user adoption curves that make catching up difficult, and leave new revenue opportunities on the table, [Tether](https://www.alchemy.com/dapps/tether) alone generated $13 billion in 2024 profits.

### How do stablecoins benefit financial institutions?

Stablecoins like PayPal's PYUSD enable fast, low-cost global payments and instant settlements without intermediaries, allow institutions to monetize treasury interest, and processed $5.28 trillion in transactions during 2024.