Blockchain is Transforming Finance, Yet Encounters Challenges with Expansion and Compliance

Nasdaq CEO Adena Friedman has identified three groundbreaking uses for blockchain technology that could resolve inefficiencies in the global financial system, highlighting its ability to improve transparency, lower operational expenses, and broaden access to financial services. Her observations resonate with the latest advancements in decentralized finance (DeFi) and the development of institutional-level crypto infrastructure, as firms such as Mutuum Finance, Bitnomial, and Kraken continue to roll out blockchain-based innovations.

Mutuum Finance, a decentralized lending protocol, serves as an example of how blockchain can be applied to structured financial products. Through its mtToken system, users can generate returns on their deposits, while borrowers benefit from adaptable interest rates, all managed by automated liquidation processes that help ensure the platform’s solvency,

. With its scheduled for Q4 2025 on the Sepolia Testnet, Mutuum’s approach features a buy-and-distribute model that links token value to protocol activity, fostering a self-sustaining growth cycle. The platform’s risk controls are further validated by CertiK’s 90/100 security audit rating, which enhances trust among investors.

The adoption of blockchain in derivatives trading is gaining momentum, with Bitnomial and Kraken at the forefront. Bitnomial has recently become the first U.S. derivatives exchange to permit stablecoins and

as margin collateral, . At the same time, Kraken’s entry into the European Union under MiFID and MiCA regulations enables EU users to use , , and stablecoins as collateral for leveraged trades, a step that boosts capital efficiency while adhering to regulatory standards, . These initiatives illustrate the increasing appetite for crypto-focused solutions among hedge funds and corporate treasuries seeking compliant digital asset exposure, .

Traditional financial players are also turning to blockchain to optimize their processes. Tradeweb Markets, in partnership with

, has announced the distribution of U.S. Treasury benchmark prices on blockchain platforms, granting institutional clients round-the-clock access to essential data, . This move highlights blockchain’s growing role in the tokenization of real-world assets, a trend likely to accelerate as regulatory bodies further clarify digital securities guidelines.

Friedman’s perspective also recognizes obstacles such as regulatory harmonization and the need for greater market understanding. While DeFi projects like Mutuum showcase blockchain’s disruptive potential for traditional systems, broader adoption will depend on overcoming challenges related to scalability and interoperability. For now, the intersection of DeFi, derivatives, and conventional finance points to a more mature landscape where blockchain’s advantages are becoming increasingly evident.