How will banks develop in order to stay on the growing coding dominance? star-news.press/wp

The dependence of encryption continues to rise with the transformation of more users to the sector amid high inflation, the pressure of the wider macroeconomic, and the desire to control their financial resources, not to mention the fear of losing its potential.

Amid this transformation, where is traditional financial institutions suitable for banks? Beincrypto has consulted many experts to explore the future of these institutions in the changing space.

The future of banks and encryption: conflict or cooperation?

Fabian, the chief investment official of the Digital Asset Bank, told Beincrypto that there is a certain competition between banks and encryption. However, what is more important is the rapprochement between the two sectors.

He explained that institutional interest in encryption has increased significantly. This is evident by a significant increase in the number of companies that adopt encrypted currencies such as Bitcoin (BTC) and ETHEREUM (ETH) as preliminary background assets, as mentioned by Beincrypto.

Thus, my league highlighted that banks recognize the hypothesis of Crypto and the operational benefits of technology, such as actual and transparent settlement. Meanwhile, encryption platforms adopt the parties to compliance and risk management such as Trafi.

Despite the inability to predict in the market, more institutions are now considered digital assets not as a side project, but “something they will need.”

“In Sygnum, the conversation was also changed. It is less than ever before Crypto has a role, and more than ever about how to bring it without disrupting everything else. What was a separate world – symbolic assets, stablecoins, and decentralized technology – now gradually appears within traditional financing.”

Sean Young, chief analyst, agreed to Mexc Research, too. He added that with the adoption of the growing cryptocurrency, banks reassess their role as mediators.

“In 2025, banks and encryption moved steadily towards rapprochement rather than conflict. We have seen clear evidence that banks no longer consider Blockchain the enemy, but rather the next layer of financial infrastructure.

However, the CEO of Bitget Grass Chen stressed that we are not heading towards a simple conflict or pure cooperation between banks and encryption. Instead, you see it as a process of absorption and containment.

She pointed out that early encryption was by nature anti -banks, rooted in the ideals of Severbank, lack of confidence in the central power, and resistance to monetary policy Fiat. For example, Bitcoin appeared after the 2008 banking crisis for some reason.

Chen also said that the soul is still continuing, especially within the framework of metal coins and the maximum societies of bitcoin.

“Most of the capital in Crypto is now flowing through the slopes associated with the bank, guardians, and increasingly increasing organizations. Institutions do not want an existential war with encryption. They want to tame, fill them, and extract fees from it-complete

Beyond Stablecoins: What is the next for banks?

It should be noted that banks are well aware of the competition they face from the encryption industry. This is why the major American banks explore the potential stablecoin projects, not only in the United States but also in countries like South Korea.

These efforts are increasing amid a major shift in the organizational environment. Between the President of the Pro-Crypto and the PRO-Crypto, the space is set for potential growth, and banks are not ready for backwardness.

You also expect the banks to go beyond Stablecoins. He explained that they can expand their offers to include the distinctive securities, the recording products that generate the return, the nursery solutions, and even the launch of layer 2 (L2) networks designed specifically for sensitive applications for compliance.

“The value proposal is clear: programming funds and distinctive assets allows a faster settlement, and the treasury management in an actual time, and new revenue flows from sequence fees or side services. Parallel, the first banks also started exploring encrypted credit markets, using encrypted assets as a guarantee of combined control,”

Chen noted that additional services are likely to include institutional institutions as a service, coding boxes, and artificial assets. She emphasized that providing more original encoded services not only logical, but strategically necessary for banks to maintain importance and resist their business models in the future.

“The separation line between banks and infrastructure providers will be voluntary – especially as it is a distinct financing.

Meanwhile, Anthony Georgiades, founder and general partner in the innovation of Capital, told Beincrypto clearly transcends basic exposure and begin to build a comprehensive set of services related to encryption. According to him,

“Many banks are now looking to provide more, from storing digital assets safely to enabling encryption payments and international transfers faster through Blockchain. Some of them add investment options such as Crypto ETF or research tools for high net customers.

Moreover, the Mexc Research analyst indicated that banks can develop into mixed financial institutions in the next stage. They are likely to provide regulatory encryption trading, real -time Blockchants, and distinctive securities custody.

“The race is continuing for banks to build compatible bridges based on confidence between Tradfi and encrypted local ecosystems.”

Are banks ready to compete in the encryption market?

Banks may have the will to survive in the changing market, but do they have an infrastructure? Well, not really.

“The banks will not be able to rely on the same systems that they used for decades. Working with Blockchains means dealing with governor, smart contracts and data on the series in an actual time. This alone calls for a different set of tools, and is often different partners.”

Duri indicated that compliance is another major challenge. Everything from Kyc to special keys need to rethink from an organizational perspective. He pointed out that it is not like that simply like delivery of encryption in an old product. It changes how value moves and how controls should be regulated.

“But the biggest shift is a mentality. This is not just a new class of assets. It comes with new rules, new behaviors, and a different speed. The institutions that work well will be the ones that remain curious, ask the right questions, and build teams that understand risks and capabilities.”

However, it has detailed that the biggest challenge of banks is to prepare for institutional know -how, not technology. Old systems, high compliance standards, the need for decentralized financial bars, 24/7 constitute obstacles. Trusted partners, organizational clarity, and familiar infrastructure are the key to overcoming these challenges.

Moreover, Georgiades drew attention to the importance of organizational compliance across different regions.

“They must make sure they agree with the regulations in every market that they work in particular about fighting money laundering, customer identity, and digital asset rules. Then comes technology: they will need safe systems that can deal with encryption and speed preparation, and reliable transfers.

In addition, Chen brought that banks would need a clear understanding of the European Union and Farah in the United Arab Emirates and SFC in Hong Kong. They should also be able to divide operations by area and regulatory scope. It is also necessary to comply with the travel base, KYC, AML, and terrorist financing requirements to transfer encryption.

“More importantly, they will need to increase investment in a new infrastructure such as institutional custody solutions, access to Blockchain knot, and developmental application programming interface to support the distinctive symbol. The biggest challenge is that old infrastructure and technological debts. Most basic banking systems have not been designed, and exceeded.

Chen also talked about the concept of “strategic paralysis”, which is a common challenge to traditional financial institutions when trying to adopt new innovations.

Without support from the higher levels of the organization, innovation tends to stop, and projects remain in the stage of “exploration” without adequate budgets or mandates or urge to move forward.

“The bank’s internal teams must gain deep experience in the field in Blockchain, which means opening its door for encryption talents to support specialized coding units. Finally, one of the biggest challenges faced by banks is to be a strategy in partnerships with encryption exchange, portfolio portfeders and compliance companies,“ Jung’s contribution.

Traditional banks opposite the original encryption companies: a new competitive era

With more banks entering the space, it will clearly take some share of the market. How unknown will be at the present time.

However, there is one certain thing: their presence will increase the competition. Experts also agreed that the shift will raise the tape.

“It will smuggle things a little. Bring large banks, confidence and deep customers’ relationships, which means that they are likely to attract users who have not been comfortable with encryption yet. However, it may seem like bad news for original companies, many banks will need help in infrastructure, compliance, and technology, these BEINCRYPTO companies.

Chen explained that banks bring in regulatory size and clarity and access to capital markets in symbolic assets and stablecoins, which will compress the margins for the Fintech exporters and RWA platforms.

However, they believe that the original encoded companies still have the upper hand in Defi without permission, the development of the protocol, and the integration of Web3.

“This is the place where differentiation should occur – through innovation, community governance, and the construction of programmed financial tools that banks cannot repeat.”

The league also confirmed similar feelings. This was explained:

“There is still an essential feature that the original companies hold: speed, culture and the ability to charge the products that focus on the user quickly. We are likely to see a complexity. Some encryption companies will partner with banks or organize themselves, while others double the open innovation.”

The executive authority highlighted that this is useful in the end. Crypto has always flourished through competition and constant improvement. With more institutions entering the space, the market will advance, but creators who remain focused on the user and technology experience will maintain their leadership.