- Bitget Chief Analyst Ryan Lee shared his insights with Blockzeit, detailing how blockchain is driving the evolution of traditional finance.
JPMorgan, the world’s largest bank, is poised to trigger dramatic growth in the sector as it reportedly prepares to integrate blockchain technology into parts of the $13 trillion repo (repurchase agreement) market. For Ryan Lee, Chief Analyst at Bitget Research, the major move indicates the direction financial institutions are heading.
How Blockchain is Changing the Global Financial Markets
Lee stated that blockchain is overhauling global financial markets, bringing in near-real-time T+0 settlement. Additionally, it enhances liquidity management compared to the T+2 and T+1 cycles of traditional finance (TradFi). It helps optimize idle capital and reduce funding costs, thereby improving market efficiency.
The technology also leads to better collateral mobility. Programmable smart contracts pave the way for the seamless cross-border movement of digital assets as collateral, without rehypothecation, to generate value from trapped liquidity.
Moreover, blockchain’s atomic settlements and transparent on-chain verification mitigate counterparty risk. It minimizes exposure to elements that could trigger systemic vulnerabilities, such as those experienced in the 2008 global financial crisis.
Maturity in Blockchain Adoption Among Financial Institutions
Lee highlighted that financial institutions are no longer just engaging blockchain for buzzword-driven experimentation, speculation, or mere crypto exposure. They’re adopting it as a necessity to unlock operational efficiency and settlement modernization. He referred to the trend as a “pragmatic maturation of adoption” from the finance sector’s old guard.
The analyst emphasized that blockchain integration in banking and TradFi cuts reconciliation costs, automates compliance, and enables 24/7 global operations. The advantages essentially allow the delivery of immediate ROI independent of token price volatility.
Furthermore, Lee pointed out that atomic settlements and near-real-time payments have significantly reduced costs and delays compared to outdated systems such as the old SWIFT standard. They also offer instant liquidity and transparent tracking.
Overall, Lee noted that the emerging revolution indicates the next phase of institutional blockchain adoption. It is now shifting from speculative pilots to production-grade hybrid infrastructure that bridges TradFi and crypto.
Growth of Tokenized Repos
Tokenized repos continue to dominate the real-world asset (RWA) tokenization space. In fact, their overall value even surpasses the total market cap of stablecoins.
The RWA market is now worth $706 billion. Accounting for nearly 50% of it, or $347 billion, are tokenized repos, which have surged from $277 billion in mid-June 2025. They have notably overtaken the stablecoin market’s $302 billion market cap.
