Will Blockchain's Move Into Finance 'Take Decades To Take Shape'?

As blockchain technology gains traction in traditional finance, Anthony Rousseau, TradeStation's vice president and head of brokerage solutions, shared his thoughts on the complexities of merging these systems. In a pre-event interview for the upcoming Benzinga Future of Digital Assets conference, Rousseau detailed the careful process of integrating blockchain within long-established financial structures.

A Careful Transition for Traditional Institutions

Rousseau, who previously worked with State Street's digital assets strategy team, described how traditional financial institutions are cautious in their approach to blockchain.

"Large financial institutions prioritize identifying and mitigating threats to their current structures while adapting new industries to fit within existing regulatory frameworks," he explained. He noted that the demand for regulated digital asset options among retail investors has grown, signaling a shift toward blockchain adoption.

The Challenges of Compliance and Compatibility

Incorporating decentralized technology within conventional finance poses challenges, particularly around regulatory compliance and internal risk systems.

"Significant challenges remain, including ensuring regulatory compliance and integrating decentralized elements with established risk and reporting systems," Rousseau remarked.

The structure of traditional finance, refined over decades, depends heavily on operational consistency, which makes the shift to transparency and decentralized control an intricate process.

Looking Toward the Future

Rousseau noted that this transformation will not happen overnight.

"Traditional finance… has spent decades building business models around the inefficiencies of current structures," he said.

A true shift toward a model of individual ownership, supported by blockchain, "will likely take decades to take shape." While slow, he acknowledged that this evolution could lead to lasting changes in the industry.

As the Benzinga Future of Digital Assets event approaches, Rousseau's perspective brings a thoughtful angle to the ongoing discussion of blockchain's role in reshaping finance while preserving structural integrity.

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As the digital asset market continues to mature, the convergence of regulatory shifts, M&A activities, and adoption trends will define the future of this dynamic field. Benzinga's Future of Digital Assets event in New York City this November will provide industry leaders and investors with a platform to explore these developments further, offering insights into the evolving regulatory environment and the latest market dynamics.

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