'Institutions Are Ready To Play': How Blockchain Is Gaining Traction In Traditional Finance

At last week's Benzinga Fintech Deal Day & Awards, Mitchell DiRaimondo, co-founder and lead project manager of SteelWave, addressed the increasing interest of traditional financial institutions in blockchain technology and tokenized real estate investments.

Speaking on a panel alongside representatives from BlackRock and Tzero, DiRaimondo shared his thoughts on the gradual but meaningful changes reshaping the financial industry.

A Growing Institutional Presence

DiRaimondo highlighted a shift in participation at this year's event, with a stronger presence of traditional financial institutions. "It's a lot more suits, less sweatshirts here," he said, reflecting the seriousness with which institutional players are approaching the blockchain space.

He noted that these institutions are increasingly prepared to enter the market, stating, "Institutions are ready to play. They're excited to see new innovations in their space, offering new offerings to their clientele."

The steady involvement of these firms points to an expanding interest in digital assets as financial institutions begin to explore how blockchain technology can enhance their offerings and operations.

Regulation Driving Confidence

Looking ahead, DiRaimondo identified regulation as the primary factor that could influence institutional adoption in the coming year. He expressed optimism about increased clarity in this area, saying, "I think there's gonna be a lot more regulatory clarity, which means institutions will feel more comfortable coming into the space."

He emphasized that this regulatory progress would help the United States assume a leadership role in digital finance. According to DiRaimondo, clear rules will encourage further institutional participation and drive advancements in financial services tied to blockchain technology.

Democratizing Real Estate Investment

DiRaimondo also touched on real estate tokenization as a transformative development. SteelWave's focus on tokenized real estate aims to make traditionally exclusive investments more accessible, offering a wider range of investors the ability to participate in commercial projects. This aligns with the growing demand for innovative investment opportunities combining traditional and digital approaches.

With institutions increasingly stepping into the digital asset space and regulatory changes anticipated to provide greater certainty, DiRaimondo suggested that this marks the beginning of a new era for blockchain integration in finance.

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Photo by Corynn Egreczky.