Changpeng Zhao, known as CZ, the founder of Binance, questioned why banks view blockchain as a threat or believe they need protection from the technology. CZ stated that blockchain enables faster, more affordable, and transparent value transfers, and emphasized that it remains open to banks as much as to crypto-native firms.
Banks increasingly adopt blockchain for transactions
The debate over whether blockchain will challenge traditional banking or serve as an innovative tool for financial institutions continues to intensify. Rather than excluding banks, blockchain networks can handle payments, settlements, and the transfer of tokenized assets, opening new opportunities for banks to migrate financial activity to round-the-clock infrastructure.
Major financial institutions are already implementing blockchain in real-world banking applications. JPMorgan, one of the world’s largest banks, has advanced beyond experimental projects through its Kinexys blockchain business. By 2026, Kinexys had processed over $4 trillion in transactions and now handles about $7 billion daily. JPMorgan also utilizes its JPMD deposit token, which allows institutional clients to transfer US dollar deposits on the Base network with near-instantaneous settlement. This approach brings blockchain technology into high-use banking operations.
South Korea’s KB Kookmin Bank started using JPMorgan’s Blockchain Deposit Account network in September 2026 for cross-border payments related to trade. Meanwhile, HSBC introduced tokenized deposits for corporate clients in Hong Kong, allowing immediate settlement of HKD and USD transactions at any time. HSBC successfully completed a cross-bank payment using tokenized deposits, aided by Hong Kong’s Project Ensemble.
JPMorgan CEO Jamie Dimon stated in 2025 that the bank used blockchain for repo transactions and data exchange and anticipated expanding its use into correspondent banking.
He explained that “blockchain is already part of our settlement and data-sharing processes, and we apply it in areas where it meaningfully streamlines operations.”
These real-world applications highlight that banks are deploying, not just monitoring, blockchain to reduce settlement times and transaction complexity.
Mini dictionary: Kinexys – JPMorgan’s blockchain platform designed for global payment and settlement processing, supporting institutional adoption of distributed ledger technology in the banking sector.
Central banks and regulators test tokenized financial systems
Central banks and government bodies are examining whether tokenized money can enhance the broader financial infrastructure. The Bank for International Settlements’ Project Agorá has assembled seven central banks and 43 private-sector banks to experiment with tokenized commercial-bank deposits and central-bank funds for cross-border payment scenarios. Hong Kong’s Project Ensemble is also piloting tokenized deposits and wholesale central-bank money, with EnsembleTX achieving live-value settlement in 2025.
| Project | Lead Institution | Focus Area | Status (2025–2026) |
|---|---|---|---|
| Project Agorá | Bank for International Settlements | Tokenized cross-border payments | Ongoing trials |
| Project Ensemble | Hong Kong Monetary Authority | Tokenized deposits, central-bank money | Pilot in live settlement |
In the United States, regulatory agencies such as the Office of the Comptroller of the Currency (OCC), Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) clarified in 2026 that banks may use either permissioned or permissionless blockchains to handle eligible tokenized securities. The type of blockchain now does not affect how assets are treated under capital requirements, which further shifts discussions toward the integration of blockchain in banking practices.
Stablecoin concerns and industry reactions
Banks remain cautious about some blockchain applications, particularly stablecoins. Because customer deposits provide critical funding for lending activity, any large migration of deposits to stablecoins could disrupt banks’ balance sheets. US banking groups have flagged this risk in ongoing discussions about stablecoin regulation.
Reactions to CZ’s comments illustrate the complexities as banks and blockchain technology converge. Several crypto industry commentators expressed their perspectives: OG argued that bank regulations contribute to the challenge, giving exchanges more operational freedom than traditional banks. Biteye focused on blockchain’s potential to minimize the power of intermediaries, while Picky compared banks’ intermediary functions such as deposit-taking and lending to brokers in the investment world.
All these views emphasize that, though blockchain can simplify transfers by minimizing intermediaries, banks still fulfill essential roles like managing deposits and credit risk.
Instead of eliminating traditional banking, the technology may alter how these institutions function, leading to new industry models.
CZ sees Web3 opportunities in Asia and the US
In a separate development, CZ highlighted Hong Kong’s potential as a future Web3 hub, citing the region’s skilled fintech workforce, close ties to mainland China, and availability of institutional capital. CZ, speaking at a Binance Life event in Hong Kong, also mentioned Dubai, Abu Dhabi, and the US as promising regions as regulatory environments become more favorable toward cryptocurrencies.
Binance, founded by CZ, is one of the world’s leading cryptocurrency exchanges, operating globally with millions of users and a wide array of digital asset offerings.
