Blockchain and DLT Fundamental to Operations for 44% of Global Fintech Leaders

New research from BVI Finance reveals a growing global consensus that decentralised models will shape the next era of financial innovation, marking a transformative shift for the financial services sector. The survey of 451 global fintech leaders for the Destination Digital report also identifies the global trends set to have the biggest impact on the industry in the next five years. 

As the fintech sector looks ahead, the report also found that:

• 44% of global firms consider blockchain or distributed ledger technology (DLT) as fundamental to their operations.
• The research notably reveals that the reliance on DLT escalates to 54% among early-stage startups, with significant uptake in key jurisdictions such as the UK (45%), Hong Kong (41%), Singapore (41%), and China (43%).
• However, only 31% of business leaders say they have fully developed legal entity for governing on-chain activities.
• Even fewer, at 26%, believe that current IFC legal frameworks sufficiently address the governance risks associated with Decentralised Autonomous Organisations (DAOs).

When considering global trends set to have the greatest impact over the next five years, 

• 26% predict that open banking and API-driven innovations will substantially influence the industry in the coming years
• 23% foresee advancements in cross-border payments and real-time settlements to be pivotal.
• 18% of fintech execs deem decentralised finance (DeFi) and smart contracts as a dominant trend. This figure increases across regions, with China (27%) and Hong Kong (28%) placing greater emphasis on this emerging development. Top of Form

Elise Donovan, CEO, BVI Finance, said: “It is clear that the shift towards decentralised finance is happening at an unprecedented and global scale. During this transformation, businesses are now acutely aware of the need to prioritise regulatory compliance for the sake of their own success and reputation amidst market disruption. 

“As decentralised models grow more sophisticated, IFCs have an essential role in helping businesses navigate this by offering regulatory clarity, legal innovation, and the institutional infrastructure necessary to scale sustainably and responsibly. 

“Jurisdictions such as the British Virgin Islands are supporting this shift, offering purpose-built legislation and licensing that accommodate the specific needs of decentralised systems while providing regulatory credibility.”