The historical opposition between traditional finance and crypto is fading. Two worlds that were once antagonistic are now converging into a hybrid ecosystem in which digital assets integrate naturally with conventional banking services. This convergence is redefining the rules of the game and opening major strategic opportunities for financial institutions.
Have you heard of Circle? This American fintech notably issues USDC, the stablecoin pegged to the US dollar. Coming from the crypto world, the company is now seeking regulatory legitimacy by going public. And it's not alone, as crypto-asset exchanges Gemini and Bullish, along with blockchain lending fintech Figure, have recently completed successful IPOs. On the banking side, more and more traditional institutions are seriously examining crypto-assets and associated services. Are we witnessing a bidirectional convergence movement that is reshaping global financial architecture?
Where worlds collide
The crypto ecosystem advances its innovations at breakneck speed and often outpaces regulation. An example? MiCA became applicable at the end of 2024 and we're already talking about MiCA II. Marked by strong dynamism, the sector is in perpetual evolution, and banks are often simply trying to catch up.
This difference in pace creates a unique opportunity for financial institutions that grasp the challenge. Rather than being subject to this innovation, they can integrate it strategically into their existing service portfolio. Hybridisation doesn't mean choosing between traditional finance and crypto, but offering the best of both worlds in a secure and compliant environment.
Pure crypto players understand the importance of this institutional legitimacy. Circle now holds over $50 billion in US debt to back its stablecoins. These companies aren't replacing the traditional financial system: they're integrating into it and reinforcing it.
Why banks hold the upper hand
Traditional banks possess decisive assets in this race towards hybridisation. First and foremost, the bank is your trusted partner. It already holds your money, it knows how to manage this type of service with robustness and security.
This trust built over years constitutes a major differentiator in a crypto sector marked by spectacular failures and security breaches. Clients seek simplicity and security, not necessarily the lowest prices. A 0.5% premium in trading fees compared to pure crypto platforms may prove acceptable if it guarantees peace of mind and integration with other financial services.
Hybridisation would also enable banks to offer services impossible in the traditional crypto ecosystem. A client could, for example, use their cryptocurrencies as collateral for a loan, or automatically invest part of their salary in Bitcoin whilst keeping the rest in conventional savings products.
The one-stop financial shop
The future belongs to institutions capable of offering a "one-stop shop" where crypto and traditional finance coexist naturally. This vision goes far beyond the basic Bitcoin buying and selling offered by some neobanks. Users must be able to truly use their crypto: deposits and withdrawals, payments, decentralised finance, NFT purchases, sending stablecoins abroad without fees, etc. Revolut already enables these transfers using blockchain, and other players may well follow suit.
This holistic approach transforms the bank into a true orchestrator of the client's personal financial ecosystem. The boundaries between traditional and digital assets fade in favour of a unified and coherent experience.
Where innovation meets opportunity
Emerging innovations in the crypto ecosystem constantly open new territories for hybridisation. The tokenisation of real assets (shares, real estate, commodities) enables, for example, 24/7 trading of traditionally illiquid investments. Case in point: Nasdaq aims to offer tokenised share trading.
Decentralised finance (DeFi) represents another promising hybridisation ground. Stablecoins already enable loans, investments and international transfers whilst circumventing the time limitations of traditional banking systems.
Laying the groundwork for tomorrow
Successful hybridisation requires a rigorous technological and regulatory approach. Banks must master three essential components: secure custody of digital assets, regulatory compliance (combating fraud and money laundering), and optimal access to crypto liquidity. Contrary to popular belief, crypto is not untraceable. Everything is traced, saved, stored. This
native transparency of blockchain paradoxically facilitates regulatory compliance and integrates naturally with existing banking processes.
The convergence between traditional finance and crypto is no longer a strategic choice but a competitive necessity. Institutions that master this hybridisation will create lasting advantages: increased customer loyalty, revenue diversification, attracting younger generations, and positioning on future financial innovations.
Our bet is that everyone will eventually embrace it, and that crypto services will become as commonplace as a securities account, a PEA (equity savings plan), or life insurance. Convergence is not a threat: it's the natural evolution of a financial sector enriched by new technological possibilities.