Blockchain's disruption will not impact all of finance equally. Trading firms are safe because market making is a fundamental need. However, intermediaries like banks, exchanges, and custodians face an existential threat as their core function—managing ledgers and access—is directly replaced by blockchain's "private key and a ledger" infrastructure.

The recent explosion of stablecoins wasn't due to a new financial innovation, but the maturation of underlying blockchain infrastructure. Cheaper and faster transactions on Layer 2 solutions and improved Layer 1s finally made large-scale, low-cost payments practical for real-world use.

The next evolution in fintech will be regulated applications that offer seamless trading across traditional securities, tokenized assets, and native crypto. This framework allows direct user access to DeFi protocols like staking and lending from a single, compliant, and user-friendly platform, bridging the gap between two currently separate financial worlds.

The stablecoin market is mature, so new entrants cannot compete on technology alone. To succeed, they must be launched by an entity with a massive built-in user base, such as a social media giant or a large multinational, making standalone stablecoin startups effectively zeros.

By embedding stablecoin wallets, companies can move beyond simple payouts. They can maintain an ongoing financial relationship, offering services like savings or credit directly to their user base (e.g., drivers, creators). This effectively allows any platform to build its own neobanking arm.

Before stablecoins, launching financial services in N countries required N² unique integrations. Now, companies can build on a single dollar-stablecoin standard and instantly operate globally. Adding other local stablecoins becomes a simple N-style addition, radically simplifying global expansion.

While stablecoins gain attention, tokenized deposits offer similar benefits—like on-chain transactions—but operate within the existing, trusted regulatory banking framework. As they are simply bank liabilities on a blockchain, they may become a more palatable alternative for corporates seeking efficiency without regulatory uncertainty.

After years of exploring various use cases, crypto's clearest product-market fit is as a new version of the financial system. The success of stablecoins, prediction markets, and decentralized trading platforms demonstrates that financial applications are where crypto currently has the strongest, most undeniable traction.

The operational backbone of the burgeoning stablecoin industry relies on a few small, traditional banks like Kansas City's LeadBank. As these obscure but critical partners tighten risk controls, they create a systemic chokepoint that could stifle the entire sector's growth and international reach.