The Future of Financial Settlement Isn't Faster, It's Fundamentally Different

Group 1 - The traditional financial infrastructure is outdated, relying on batch processing systems and correspondent banking relationships that do not meet the demands of modern commerce [2][4] - Current "real-time" payment systems are essentially faster messaging systems built on 1970s architecture, still requiring reconciliation and subject to counterparty risk [2][3] - The operational complexity and working capital requirements for fintechs promising "instant" international transfers highlight the inefficiencies of the existing system [3][4] Group 2 - Settlement friction affects all businesses that handle money, tying up working capital and complicating financial operations [4][5] - The demand for 24/7 digital commerce and customer expectations for efficiency necessitate a shift away from traditional financial systems [5] - Blockchain technology offers a transformative solution with a shared, programmable settlement layer that operates continuously and without intermediaries, enabling faster value transfer [5][6] Group 3 - BlackRock's tokenization of its money market fund exemplifies the operational advantages of 24/7 trading and near-instant settlement [6] - Tokenized shares can lead to a more efficient, transparent, and accessible capital market infrastructure, creating new financial markets [6]