Blockchain technology is no longer a fringe experiment—it's becoming a foundational force in modern finance. From streamlining data synchronization to enabling unprecedented transparency, blockchain is addressing long-standing inefficiencies in capital markets. In this insightful dialogue, Greg Schvey, founder and CEO of Axoni and former co-founder of TradeBlock, shares his perspective on how blockchain is evolving from hype to real-world impact.
The Evolution of Blockchain in Financial Markets
When Greg Schvey first encountered Bitcoin in 2011 through his brother and future co-founder Jeff, the technology was confined to niche online forums. What began as a decentralized curiosity has since matured into a critical infrastructure layer for global financial systems.
"The idea that all blockchain-based infrastructure today originated from an anonymous inventor and was pushed forward on internet forums—that’s something most people may not even realize," Schvey reflects.
While early applications like Bitcoin and ICOs were designed to bypass traditional regulation, their limitations soon became apparent. Today, blockchain is no longer about circumvention—it’s about integration. It’s being used to build secure, transparent, and interoperable systems that serve both institutions and regulators.
Beyond Hype: Real-World Adoption in Capital Markets
Despite years of experimentation, Schvey emphasizes that we’re still in the early stages of a 10–20 year transformation. While public perception often swings between euphoria and skepticism, enterprise adoption tells a different story—one of steady progress.
Financial institutions are increasingly viewing enterprise blockchain as a viable alternative to legacy databases and siloed networks. Unlike consumer crypto, which remains largely retail-driven, institutional blockchain focuses on solving operational pain points: data reconciliation, settlement latency, and counterparty risk.
Why Banks Are Warming Up—Cautiously
Banks are taking a measured approach. While many recognize the value of shared ledgers, regulatory uncertainty keeps them from embracing token-based incentives. Instead, they’re investing in permissioned networks where control, compliance, and auditability are built in.
"Most banks now see enterprise blockchain as an important alternative," Schvey notes. "But adoption varies widely across departments and organizations."
Institutional interest in digital assets has grown alongside the emergence of trusted custodians, regulated exchanges, and reliable trading counterparties—key components of a maturing ecosystem.
Axoni: Solving the 'Last Mile' Problem in Finance
Axoni emerged from TradeBlock, a platform originally built to help institutional traders manage fragmented data across multiple exchanges and wallets. As the team developed tools for post-trade processing in digital currencies, they realized the underlying protocols could revolutionize traditional finance.
What Axoni Does Today
At its core, Axoni ensures clients have timely, accurate, and complete data—a seemingly simple goal that has eluded financial markets for decades due to fragmented systems and manual reconciliation.
But Axoni is more than just a software provider. It partners with major institutions to deploy complex blockchain solutions at scale, creating proven, repeatable models for infrastructure rollout across asset classes.
"We work closely with the industry to align large institutions on complicated technology deployments," Schvey explains.
The Real Value: Automation Meets Trust
Critics often dismiss blockchain as “just another database” or accuse projects of being “blockchain for blockchain’s sake.” But Schvey argues the breakthrough isn’t decentralization—it’s automated consensus.
"Electronic data transfer has existed for decades," he says. "The leap is confirming that all parties store and process data correctly—without manual intervention."
This “last mile” automation eliminates costly breaks in reconciliation, reduces operational overhead by billions, and enhances risk monitoring.
👉 See how automated data synchronization is transforming derivatives trading.
Case Study: Fixing Equity Swaps with Shared Ledgers
One of the clearest examples of blockchain’s value lies in equity swaps, where thousands of data points must be tracked across multiple counterparties. Even minor discrepancies can lead to disputes, delays, and massive operational costs.
Traditionally, each party maintains its own records. Disagreements over valuations are common—and resolving them requires time-consuming back-and-forth.
With Axoni’s blockchain infrastructure, every data entry on the shared ledger is immediately synchronized and cryptographically verified across all participants. There’s no need to reconcile differences because everyone sees the same truth in real time.
This isn’t theoretical: The Depository Trust & Clearing Corporation (DTCC) uses Axoni’s platform to manage $10 trillion in derivatives exposure. The Options Clearing Corporation (OCC) relies on it for $72 billion in loaned equities.
"This is arguably the first truly fundamental fix in a very long time," Schvey says. "Relying fully on ledger data brings efficiency that’s never existed before."
Moving Beyond Experimentation
The era of “blockchain pilots” is ending. Projects once funded simply for having the word “blockchain” attached must now deliver tangible results.
"Those days are behind us," Schvey observes. "Solutions have to survive on their own merits."
As market knowledge grows, decision-makers are better equipped to assess real use cases versus empty buzzwords. The result? Fewer total deployments—but a higher proportion of successful ones.
The Road Ahead: Regulatory Clarity and Institutional Integration
Looking forward, Schvey sees two major frontiers:
- Traditional securities on blockchain: Despite attempts, mainstream assets like stocks and bonds haven’t meaningfully migrated to distributed ledgers.
- Regulatory clarity: A key milestone will be formal recognition of digital securities in decentralized environments.
He also envisions a future where automation drastically reduces reliance on massive balance sheets—a shift that could empower new challengers to traditional financial models.
"People overestimate how automated finance is today," Schvey says. "There’s still so much manual work. That will change."
Social Impact: Transparency as a Public Good
Beyond cost savings, blockchain offers broader societal benefits. Its inherent transparency and auditability make systemic risks easier to detect and mitigate—something regulators and central banks increasingly value.
"Much of what institutions spend time on is understanding risk impact," Schvey notes. "With full visibility, identifying systemic threats becomes far easier."
Blockchain in China: A Model of State-Driven Innovation
China stands out for its strategic investment in blockchain infrastructure. Government support has accelerated large-scale network development—a stark contrast to the market-led approach in the U.S.
"I have to imagine China will be the first global power with a government-backed digital currency," Schvey predicts. While concerns around access and authority remain, the potential to set a global precedent is undeniable.
Frequently Asked Questions (FAQ)
Q: Is blockchain replacing traditional databases in finance?
A: Not entirely—but it’s augmenting them where trust, synchronization, and multi-party validation matter most. Blockchain excels in environments where multiple institutions need shared truth without central control.
Q: Are banks really using blockchain, or is it just PR?
A: Major banks are actively deploying enterprise blockchain solutions, particularly in post-trade processing and clearing. Real-world implementations by DTCC and OCC prove it’s beyond pilot phase.
Q: Can everyday investors benefit from blockchain?
A: Yes—indirectly. Improved transparency reduces systemic risk, lowers costs, and enhances market stability. Over time, this leads to fairer pricing and better services for all investors.
Q: What prevents wider adoption of blockchain in traditional finance?
A: Regulatory uncertainty, integration complexity with legacy systems, and lack of standardized protocols are key barriers. However, progress is accelerating as standards emerge.
Q: Will every company need its own blockchain team?
A: No. While institutions need enough expertise to assess security and risk, most will rely on specialized providers—similar to how firms use cloud services without building their own data centers.
Q: How does blockchain improve risk management?
A: By providing real-time visibility into exposures across counterparties, blockchain enables faster detection of concentration risks and anomalies—critical for preventing cascading failures.
👉 Explore how next-generation financial infrastructure is being built—today.
Blockchain is no longer a speculative trend. It’s a pragmatic tool reshaping finance from the ground up—driving efficiency, transparency, and resilience. As pioneers like Axoni demonstrate, the future of finance isn’t just digital; it’s shared, verified, and automated.