PREDICT 2026: New financial fabric

 

• How are financial institutions balancing innovation in tokenised assets with the need to maintain trust, stability, and compliance across fragmented regulatory environments?
• What role will blockchain-based infrastructure play in bridging traditional finance and decentralised platforms, and how are banks preparing for this convergence?
• In a world of increasing geopolitical fragmentation, how can digital assets support financial sovereignty while enabling global interoperability?
• What governance models are emerging to ensure that smart contracts and tokenised money operate securely and ethically within regulated financial systems?
• How are central banks and financial institutions leveraging AI and quantum technologies to future-proof digital asset infrastructure and policy frameworks?

Financial institutions are undergoing a profound shift, embracing emerging technologies like blockchain, AI, and quantum computing to modernise transaction banking. As traditional players like Swift begin integrating blockchain-based ledgers, the convergence of TradFi and DeFi is no longer theoretical, it’s becoming operational. This transformation is driven by the need for speed, transparency, and optionality in cross-border payments, with banks increasingly acting as infrastructure providers in a hyper-connected financial ecosystem.

Central banks are navigating a delicate balance between fostering innovation and preserving monetary stability. The rise of CBDCs, tokenised assets, and programmable money demands new policy frameworks that uphold trust in national currencies while enabling digital alternatives. Financial stability and effective monetary policy must not be compromised, even as digital euros and other sovereign digital currencies gain momentum.

As digital assets proliferate, governance becomes a central concern. Institutions must ensure that smart contracts and tokenised instruments operate within secure, ethical, and compliant frameworks. The divergence of global regulatory environments adds complexity, requiring resilience and adaptability from financial actors. Collaborative efforts between banks, fintech firms, and regulators are essential to create standards that prevent distorted incentives and market volatility.

Geopolitical fragmentation is reshaping global trade and financial flows, prompting regions to seek digital sovereignty through infrastructure like the digital euro. Tokenised money and digital assets offer tools for financial independence, but they must also support interoperability across borders. The challenge lies in designing systems that respect national priorities while enabling seamless global value exchange.

Innovation in digital assets must be purposeful, not just reactive. As AI and quantum technologies accelerate change, financial institutions must anticipate how these tools will reshape risk management, customer engagement, and infrastructure design. The future of finance will be defined by how well institutions align technological advancement with strategic goals, ensuring that digital transformation enhances resilience, trust, and global cooperation.

Register for this PREDICT 2026 Finextra Research webinar to join our panel of industry experts who will discuss the role of blockchain in bridging traditional finance and decentralised platforms.