At its most basic level, finance is a system for moving value. Every transaction, whether domestic or cross-border, relies on a network of institutions, protocols and processes working together to facilitate that movement. For decades, this system has relied on intricate layers of infrastructure that (for modern standards) can be slow, complex and heavily dependent on intermediaries. While it does work, it was never designed for a fast, fully digital world. In the past decade, however, a new system has emerged. What we are seeing now is the early stages of the digitization of finance. And this system is built on digital rails. Transactions can be executed and settled in near real time, data is shared across networks rather than reconciled between them, and the reliance on intermediary institutions has disappeared. 

But when the underlying system changes, the implications extend far beyond any single asset class. It reshapes how financial institutions operate, how transactions are processed, and, ultimately, how the entire system functions.

Can the system behind global finance be rebuilt?

The way we move money today conforms to and is determined by its underlying infrastructure. For decades, global finance has operated through systems like SWIFT (Society for Worldwide Interbank Financial Telecommunication), where transactions pass through a network containing 11,000 banks and financial institutions before eventually being verified, cleared and settled. 

That structure has worked well and therefore, many people trust it, but it has also accumulated operational drag. Multiple days are often required for payments to settle, which ties up capital and makes the entire process inefficient. What’s happening now is that this system is being digitized. You can think of what’s often referred to as a “quantum financial system” as a digital evolution of SWIFT. It has the potential to become the bedrock for how transactions are processed going forward. 

This is what the digitization of finance represents. If this transition gains traction, it will transform the fundamental mechanics of the financial system. Transactions will accelerate, settlements will become nearly instantaneous, and we will become less dependent on traditional intermediaries. Because the financial system is so interconnected, this transformation will trigger changes in all the structures built upon it.

As our infrastructure evolves, so must the form of value

Once the financial system has begun to move onto digital infrastructure, the form of money used within that system will need to evolve as well. If transactions are processed on digital rails, then value needs to exist in a format that can move seamlessly within that environment. This is where stablecoins offer a solution. As transactions increasingly shift onto blockchain-based systems, stablecoins will naturally become a more prevalent form of value. They are structured to move within that framework, to settle quickly, and to function without the delays that exist in traditional systems.

To be clear, this isn’t about speculation or price movement, it’s about functionality. A system that operates in real time requires units of value that can also move in real time. A system built on shared infrastructure requires assets that can be recorded and transferred within that same structure. Stablecoins fit that requirement. As the system evolves, their role will become more practical, more integrated and ultimately more widespread.

What does this mean for banks and intermediaries?

The complete digitization of finance begs the question: what will the role of intermediaries look like? Historically, finance has relied heavily on this network of banks, payment processors and clearing systems. They have established trust, validated transactions and moved funds between parties and regions that lack a shared infrastructure. 

This web was necessary when information and systems were fragmented; they needed bridges in order to communicate. But as people gain trust in a new system, and transactions move increasingly onto blockchain-based rails, this web loses its hold. If transactions are recorded, verified, and settled across a single system, you simply don’t need to involve as many parties to complete the same transaction. 

Intermediaries won’t vanish, but they must evolve, and crypto payment gateways are an example of this evolution. They act as direct access points, streamlining transactions to settle in hours instead of days, and offer increased transparency and a clearer view of the transaction lifecycle. The difference is in how they operate. Rather than sitting between multiple fragmented systems, they connect directly to a shared infrastructure, which reduces complexity while improving speed and visibility.

This has major implications for financial institutions. Banks won’t disappear, but the existing financial structure will be forced to adapt to a set of mechanics vastly different from those they were originally based on.

Find more reflections on the digitization of finance, real estate, business, AI, and other interests of mine on my YouTube and social media channels.