A recent report published by Ripple indicates that traditional financial institutions are increasingly embedding blockchain technology into their long-term strategic frameworks. With more than $100 billion invested in blockchain companies since 2020 and stablecoin transaction volumes crossing $700 billion per month in early 2025, the financial sector appears to be embracing the shift toward decentralized systems. Ripple’s findings suggest that the transformation is not only accelerating but also becoming a critical factor in how global finance is being redefined.
This trend is further underscored by projections from Boston Consulting Group, which anticipates that tokenized assets could reach a cumulative value of nearly $19 trillion by 2033. Ripple’s research highlights that nine out of ten finance leaders worldwide believe blockchain will have a substantial or even transformative effect on the industry within the next three years. The report argues that blockchain’s appeal lies in its ability to deliver near-instant settlements, lower transaction costs, continuous availability, and greater transparency—all attributes that are now driving its widespread adoption.
The study, titled Banking on Digital Assets: How Traditional Finance is Investing in Blockchain, was produced in collaboration with CB Insights and the UK Centre for Blockchain Technologies (UKCBT). It explores how legacy financial institutions are incorporating blockchain into their operations, where their investments are being directed, and how the broader ecosystem is evolving in response. The report emphasizes that blockchain is no longer seen as a speculative technology but rather as the underlying infrastructure supporting cryptocurrencies, stablecoins, and tokenized real-world assets.
One of the most compelling use cases discussed in the report is cross-border payments. By removing the numerous intermediaries that typically slow down traditional payment processes, blockchain allows for transactions to be completed in seconds rather than days. This capability enhances liquidity, improves market access, and significantly reduces overhead costs for enterprises. The report also points to features such as automated compliance mechanisms, smart contracts, and programmability as factors making blockchain more efficient and accessible for diverse markets.
Financial institutions are not just using blockchain to optimize existing workflows—they are also leveraging it to unlock new asset classes and reduce dependency on outdated systems. Developments on the XRP Ledger, including the addition of automated market makers and a permissioned decentralized exchange, have provided institutions with new tools to participate in decentralized finance in a more scalable and regulatory-compliant manner.
The shift is happening: banks are investing in blockchain.
➡️$100B+ invested in blockchain companies since 2020
➡️$700B/month in stablecoin volume
➡️$18T projected in tokenized assets by 2033Our latest report with @CBInsights and @UKCBT_org uncovers how financial…
— Ripple (@Ripple) July 29, 2025
Key investment areas identified in the report include institutional-grade tools for trading, staking, and tokenization, as well as innovations in global payments and digital asset custody. These areas reveal how financial institutions are constructing digital asset strategies not just for experimentation but for future-proofing their operations.
The findings suggest that digital assets have moved beyond the stage of optional innovation to become essential components of modern financial architecture. Banks are now investing heavily in digital infrastructure, forming partnerships with fintech firms, and launching new services to remain competitive. As blockchain adoption becomes more widespread, institutions are preparing to operate within a future system that will demand strong security protocols, regulatory clarity, and shared technical standards.
The report concludes with insights from Francesco Pierangeli, Deputy Director of UKCBT, who examines the key inflection points that have shaped the blockchain sector and outlines what the coming years might bring as traditional finance continues its digital transformation.
