e momIn the last article “ The Industrialization of Blockchain in Banking, Financial Services, and Insurance” a lengthy discussion ideally anchored blockchain as the force multiplier or a problem solver for the BFSI sector. But merely anchoring blockchain as the silver bullet in the BFSI sector will not be enough unless tangible impacts can be accounted for. In this piece, some of the use-cases with real time impact will provide tangible proof that blockchain is indeed changing the face of BFSI.

Reimagining BFSI with Blockchain in the 21st Century

The banking, financial and insurance sector has been yearning for an innovation which blockchain has delivered by making way for the following use-cases to change the world in respective segments;

1. In Banking

Decentralized Reserve Currencies

Crisis situations have brought back the narrative that in times of uncertainty, you need a better way to prepare against the odds which might come in many forms from financial turmoils to sanctions or change in diplomatic equations. In such times, you need better ways to circumvent the odds when existing financial systems fail to deliver.

For example, during the Ukraine-Russia war, many Russian oligarch accounts were frozen because of sanctions. As a result, central banks across the globe are looking for an asset class that can bypass uncertainties and provide the perfect case to command control and challenge hegemonic rise.

Though gold is a good option to choose, but Bitcoin(BTC) wins here because whether it is about surviving financial sanctions or withstanding economic crises like bank runs, BTC has always performed better in all these situations as evident from the chart below.

As you can see, despite the SVB Bank Failure, BTC still continued an upward trend not just in 2023 but even at the time of pandemic in 2020 because of its structural engineering . Such records during crises have put the case for BTC to be used as a reserve currency, not just to hedge against inflation, economic risks and more, but also to protect the sovereignty of the country.

At the moment, there are three nations which have vehemently considered BTC as a reserve currency: the US, El Salvador and Czech Republic. The US has passed an executive order under the Trump administration to acquire more than 198,000 BTC, which shall act like a strategic reserve. Likewise, El Salvador and Czech Republic are using BTC to introduce tokenized finance in their economy for modernization and to boost economic inclusion.

Modernizing Foreign Remittance

Remitting payments through banks has ended up as widely expensive for users in 2025. For example, in comparison to MTO or Money Transfer Operators, the banks are charging 12.5%,whereas, MTOs are charging only 5.5%. And banks are compelled to do the same because of an imminent pressure to charge overhead, flat fees, intermediaries, and weak exchange rates. Due to this, banks are losing the battle with the MTO as evident from the chart below.

But blockchains can change the game for banks. For example, Santander, a major multinational Spanish Bank has partnered with Ripple Net. At the moment, after the integration of Ripple to launch One Pay FX, Santander has almost captured the Spain, UK, Brazil, and Poland market capturing 50% of international payments using stablecoins.

So far, not just Santander but other players in banking like Amina and more than 300+ are using Ripple because it has provided low cost, fast settlement and compliant options to banking institutions to challenge the rise of MTOs that are eating up the remittance share of the banking sector.

1. In Financial Services

Despite the AUM market reaching $147 trillion by June 2025, if someone says that it is going through a profitability pressure, it would ideally be surprising. But this is undoubtedly true as per Mackinsey report which says that AUM firms, which are using legacy systems, could only meet with periodic reporting, simpler regulatory guidelines (inability to do KYC, AML ) due to technological bottlenecks.

As a result, they are able to recover only 1/3rd of the profits, while the remaining 2/3rd of every revenue dollar has been absorbed by operational expenses to meet various regulatory and other operational challenges as per Mackinsey report.

But the scenario can significantly change upon using digital interfaces, multi-jurisdictional compliance ready infrastructure, richer data management, and enhanced cyber security measures to build trust.

JP Morgan, by using blockchain technology, is on the way to achieve this. So far, JP Morgan, by using blockchain technology, has been able to launch the tokenized money market fund with a $100 M listing initially in a matter of few months and by undertaking optimal investment to launch the same.

John Donohue, Head of Global Liquidity at J.P. Morgan Asset Management said: “Tokenization can fundamentally change the speed and efficiency of transactions, adding new capabilities to traditional products”. He added, “There is a massive amount of interest from clients around tokenization… [and] we have a product lineup that allows them to have the choices that we have in traditional money-market funds on blockchain”. Due to tokenization on blockchain, now these funds can easily enter restricted areas by adhering to all the compliance hurdles using technology as an underlying layer to mitigate the same

So far, not just JP Morgan, but some of its close counterparts, like Franklin Templeton have also used blockchain to enter and penetrate new markets using tokenization through the Benji Token. They are able to attract retail and institutions through this initiative. And presently, its FOBOXX fund has just entered the Asian market by making inroads in the Hong Kong region.

Trade Finance Optimization

Every year global trade is shrinking by a whopping $2.5 T because there’s no availability of technology in place to establish a mature business model to mitigate the challenges involved. For example, imagine trade happening between two parties located in two different locations with different jurisdictional limitations and regulatory challenges, there’s always a default risk involved in such a case.

Why so? Because, it is very hard to establish an enforceable contract to determine the risk sharing. One such incident occurred to demonstrate the same when an Istanbul based producer of textile exported knitted dresses to an importer in Italy, but the freight carrier didn’t adhere to the contract rules and delivered the goods to the importer before the payment.

Upon receiving the consignment, the importer refused to pay up because they claimed that the goods received were not in accordance with the requirements. In the absence of following problems like: (i) proper risk models, (ii) manual processing, (iii) legal misalignment, (iv) fragmented regulations, (v) siloed digital platforms and (vi) poor interoperability, it was very hard to prove who was at fault.

And this is not just a single incident but due to such events, as per reports, out of 80% of trade accomplished annually worldwide, 1% of the trade finance, which equals $2.5T figures remains doubtful . And out of that 1%, there’s a certainty that $50 billion in losses due to such frauds where either of the parties involved defaults due to complex paperwork or regional disparities and inability to enforce accountability.

Blockchains are fixing these problems and so far they have made considerable contributions. For example, Hong Kong-based MTC Electronic Co Limited (MTC) exported shipments of raw materials to its Shenzhen Based Partner by using Voltron, a shared blockchain platform co-founded by 8 member banks.

The process was completed in a matter of a few hours instead of 7 to 10 days with complete accountability. So far, using the Voltron, now called Contour, HSBC has facilitated Trade Finance amounting to $857 B to remain as the top banks using blockchain technology for trade financing and settlements. Other than HSBC, there other players as well like Standard Chartered, DBS, and Citi, MUFG, Crédit Agricole, Lloyds, and ABN Amro which are also a part of the Contour, a financial service initiative using blockchain to speed up payment settlements in a compliant and accountable manner.

1. In Insurance

Strengthening Farm Insurance

Farmers are the most vulnerable section of the society when it comes to availing insurance protection. For example, India, despite being an agriculture driven economy, only 30% of the farmers are insured. And these numbers are so low because of a few reasons (i) high premium of insurance (ii) extended time for claim settlements ( 5 months to 12 months). For example, at the time of writing, more than 5,405 crore of unpaid crop-insurance claims are still pending because of delayed relay of data required to process the same. And this problem is not only present in India alone, but it transcends beyond to other regions like Africa, where the farmers experience the same problems.

But blockchain solutions have provided a way out to not just expedite the claim process but even make the insurance protection affordable for the farmers in the agriculture sector. Lemonade Crypto Coalition, is a subtle example to quote here who are using Area Yield Index mechanism powered by blockchains to make insurance protection affordable and accessible.

In the Area Yield Index, specific territorial regions are marked on top of blockchain to estimate claim premiums and settlement scenarios. Subsequently, a claim is determined and farmers can form parcels to subscribe to the insurance. Upon identification of any unforeseen event or crop failure due to natural calamities, all the farmers are compensated nearly instantly without any failure. So far, under the Lemonade Crypto Climate Coalition, more than 7000 farmers have benefitted when it comes to receiving instant support during crop failures.

Bolstering Fraud Detection

Frauds have ended up as a major problem for the insurance service providers eating up their thin margins of 3% to 5% . For the record, every year the insurance industry in the US loses $308.6 billion or $932.63/ person to fraudulent claims. And this is happening primarily because of the use of AI systems to create fake bills and claim insurance in the process. And these are the sectors who are at the highest risk of frauds

As you can see in the above image, it is very hard for the operations, cyber & speciality lines, life & health sectors to easily identify the frauds in the insurance. But blockchains are making a world of difference. For example, RiskStream has been using blockchain technology to go past the traditional ways to mask and anonymize the data. In its stead, Risk Stream creates active data banks that are accessible by all network participants to detect frauds and prevent claims from happening.

If you are facing any problems in the BFSI segment and you want an innovative way to overcome the issue, Zeeve, as an enterprise grade neutral blockchain platform can help you. We very well understand that compliance is of utmost importance to the BFSI segment and for that matter, we provide an ISO 27001, SOC 2 Type II, and GDPR compliant platform.

Due to this, whatever solution that you intend to implement for the BFSI sector to solve some of its innate problems would remain compliant and operational across different geographical regions. With more than 40+ integration partners, you can easily integrate anything as per your requirements. So, why wait? Our experts are here to help you understand where we can fit into your existing technology stack and modernise the same from the grounds up to meet incoming challenges.

e momIn the last article “ The Industrialization of Blockchain in Banking, Financial Services, and Insurance” a lengthy discussion ideally anchored blockchain as the force multiplier or a problem solver for the BFSI sector. But merely anchoring blockchain as the silver bullet in the BFSI sector will not be enough unless tangible impacts can be accounted for. In this piece, some of the use-cases with real time impact will provide tangible proof that blockchain is indeed changing the face of BFSI.

Reimagining BFSI with Blockchain in the 21st Century

The banking, financial and insurance sector has been yearning for an innovation which blockchain has delivered by making way for the following use-cases to change the world in respective segments;

1. In Banking

Decentralized Reserve Currencies

Crisis situations have brought back the narrative that in times of uncertainty, you need a better way to prepare against the odds which might come in many forms from financial turmoils to sanctions or change in diplomatic equations. In such times, you need better ways to circumvent the odds when existing financial systems fail to deliver.

For example, during the Ukraine-Russia war, many Russian oligarch accounts were frozen because of sanctions. As a result, central banks across the globe are looking for an asset class that can bypass uncertainties and provide the perfect case to command control and challenge hegemonic rise.

Though gold is a good option to choose, but Bitcoin(BTC) wins here because whether it is about surviving financial sanctions or withstanding economic crises like bank runs, BTC has always performed better in all these situations as evident from the chart below.

As you can see, despite the SVB Bank Failure, BTC still continued an upward trend not just in 2023 but even at the time of pandemic in 2020 because of its structural engineering . Such records during crises have put the case for BTC to be used as a reserve currency, not just to hedge against inflation, economic risks and more, but also to protect the sovereignty of the country.

At the moment, there are three nations which have vehemently considered BTC as a reserve currency: the US, El Salvador and Czech Republic. The US has passed an executive order under the Trump administration to acquire more than 198,000 BTC, which shall act like a strategic reserve. Likewise, El Salvador and Czech Republic are using BTC to introduce tokenized finance in their economy for modernization and to boost economic inclusion.

Modernizing Foreign Remittance

Remitting payments through banks has ended up as widely expensive for users in 2025. For example, in comparison to MTO or Money Transfer Operators, the banks are charging 12.5%,whereas, MTOs are charging only 5.5%. And banks are compelled to do the same because of an imminent pressure to charge overhead, flat fees, intermediaries, and weak exchange rates. Due to this, banks are losing the battle with the MTO as evident from the chart below.

But blockchains can change the game for banks. For example, Santander, a major multinational Spanish Bank has partnered with Ripple Net. At the moment, after the integration of Ripple to launch One Pay FX, Santander has almost captured the Spain, UK, Brazil, and Poland market capturing 50% of international payments using stablecoins.

So far, not just Santander but other players in banking like Amina and more than 300+ are using Ripple because it has provided low cost, fast settlement and compliant options to banking institutions to challenge the rise of MTOs that are eating up the remittance share of the banking sector.

1. In Financial Services

Despite the AUM market reaching $147 trillion by June 2025, if someone says that it is going through a profitability pressure, it would ideally be surprising. But this is undoubtedly true as per Mackinsey report which says that AUM firms, which are using legacy systems, could only meet with periodic reporting, simpler regulatory guidelines (inability to do KYC, AML ) due to technological bottlenecks.

As a result, they are able to recover only 1/3rd of the profits, while the remaining 2/3rd of every revenue dollar has been absorbed by operational expenses to meet various regulatory and other operational challenges as per Mackinsey report.

But the scenario can significantly change upon using digital interfaces, multi-jurisdictional compliance ready infrastructure, richer data management, and enhanced cyber security measures to build trust.

JP Morgan, by using blockchain technology, is on the way to achieve this. So far, JP Morgan, by using blockchain technology, has been able to launch the tokenized money market fund with a $100 M listing initially in a matter of few months and by undertaking optimal investment to launch the same.

John Donohue, Head of Global Liquidity at J.P. Morgan Asset Management said: “Tokenization can fundamentally change the speed and efficiency of transactions, adding new capabilities to traditional products”. He added, “There is a massive amount of interest from clients around tokenization… [and] we have a product lineup that allows them to have the choices that we have in traditional money-market funds on blockchain”. Due to tokenization on blockchain, now these funds can easily enter restricted areas by adhering to all the compliance hurdles using technology as an underlying layer to mitigate the same

So far, not just JP Morgan, but some of its close counterparts, like Franklin Templeton have also used blockchain to enter and penetrate new markets using tokenization through the Benji Token. They are able to attract retail and institutions through this initiative. And presently, its FOBOXX fund has just entered the Asian market by making inroads in the Hong Kong region.

Trade Finance Optimization

Every year global trade is shrinking by a whopping $2.5 T because there’s no availability of technology in place to establish a mature business model to mitigate the challenges involved. For example, imagine trade happening between two parties located in two different locations with different jurisdictional limitations and regulatory challenges, there’s always a default risk involved in such a case.

Why so? Because, it is very hard to establish an enforceable contract to determine the risk sharing. One such incident occurred to demonstrate the same when an Istanbul based producer of textile exported knitted dresses to an importer in Italy, but the freight carrier didn’t adhere to the contract rules and delivered the goods to the importer before the payment.

Upon receiving the consignment, the importer refused to pay up because they claimed that the goods received were not in accordance with the requirements. In the absence of following problems like: (i) proper risk models, (ii) manual processing, (iii) legal misalignment, (iv) fragmented regulations, (v) siloed digital platforms and (vi) poor interoperability, it was very hard to prove who was at fault.

And this is not just a single incident but due to such events, as per reports, out of 80% of trade accomplished annually worldwide, 1% of the trade finance, which equals $2.5T figures remains doubtful . And out of that 1%, there’s a certainty that $50 billion in losses due to such frauds where either of the parties involved defaults due to complex paperwork or regional disparities and inability to enforce accountability.

Blockchains are fixing these problems and so far they have made considerable contributions. For example, Hong Kong-based MTC Electronic Co Limited (MTC) exported shipments of raw materials to its Shenzhen Based Partner by using Voltron, a shared blockchain platform co-founded by 8 member banks.

The process was completed in a matter of a few hours instead of 7 to 10 days with complete accountability. So far, using the Voltron, now called Contour, HSBC has facilitated Trade Finance amounting to $857 B to remain as the top banks using blockchain technology for trade financing and settlements. Other than HSBC, there other players as well like Standard Chartered, DBS, and Citi, MUFG, Crédit Agricole, Lloyds, and ABN Amro which are also a part of the Contour, a financial service initiative using blockchain to speed up payment settlements in a compliant and accountable manner.

1. In Insurance

Strengthening Farm Insurance

Farmers are the most vulnerable section of the society when it comes to availing insurance protection. For example, India, despite being an agriculture driven economy, only 30% of the farmers are insured. And these numbers are so low because of a few reasons (i) high premium of insurance (ii) extended time for claim settlements ( 5 months to 12 months). For example, at the time of writing, more than 5,405 crore of unpaid crop-insurance claims are still pending because of delayed relay of data required to process the same. And this problem is not only present in India alone, but it transcends beyond to other regions like Africa, where the farmers experience the same problems.

But blockchain solutions have provided a way out to not just expedite the claim process but even make the insurance protection affordable for the farmers in the agriculture sector. Lemonade Crypto Coalition, is a subtle example to quote here who are using Area Yield Index mechanism powered by blockchains to make insurance protection affordable and accessible.

In the Area Yield Index, specific territorial regions are marked on top of blockchain to estimate claim premiums and settlement scenarios. Subsequently, a claim is determined and farmers can form parcels to subscribe to the insurance. Upon identification of any unforeseen event or crop failure due to natural calamities, all the farmers are compensated nearly instantly without any failure. So far, under the Lemonade Crypto Climate Coalition, more than 7000 farmers have benefitted when it comes to receiving instant support during crop failures.

Bolstering Fraud Detection

Frauds have ended up as a major problem for the insurance service providers eating up their thin margins of 3% to 5% . For the record, every year the insurance industry in the US loses $308.6 billion or $932.63/ person to fraudulent claims. And this is happening primarily because of the use of AI systems to create fake bills and claim insurance in the process. And these are the sectors who are at the highest risk of frauds

As you can see in the above image, it is very hard for the operations, cyber & speciality lines, life & health sectors to easily identify the frauds in the insurance. But blockchains are making a world of difference. For example, RiskStream has been using blockchain technology to go past the traditional ways to mask and anonymize the data. In its stead, Risk Stream creates active data banks that are accessible by all network participants to detect frauds and prevent claims from happening.

If you are facing any problems in the BFSI segment and you want an innovative way to overcome the issue, Zeeve, as an enterprise grade neutral blockchain platform can help you. We very well understand that compliance is of utmost importance to the BFSI segment and for that matter, we provide an ISO 27001, SOC 2 Type II, and GDPR compliant platform.

Due to this, whatever solution that you intend to implement for the BFSI sector to solve some of its innate problems would remain compliant and operational across different geographical regions. With more than 40+ integration partners, you can easily integrate anything as per your requirements. So, why wait? Our experts are here to help you understand where we can fit into your existing technology stack and modernise the same from the grounds up to meet incoming challenges.