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The financial industry will inevitably evolve with blockchain technology, according to Fidelity CEO Abigail Johnson.
“I think there’s zero chance that it’s not happening because it is happening,” Johnson said during 16z’s Founders Summit in October when asked whether Wall Street would integrate blockchain technology.
She added that “bigger players” would prefer to move faster toward upgrading infrastructure but are handicapped by the industry’s interconnectedness in a video of the remarks released in Dec. 4.
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“There’s a lot of small players who just don’t have the wherewithal to participate in that kind of an upgrade,” she said.
Still, Johnson said competition and regulation would “push [Wall Street] kicking and screaming along.” And these forces may already be in play.
Earlier this month, Vanguard announced that it would allow trading of cryptocurrency exchange-traded funds on its platform, in a marked shift from its long-held stance that cryptocurrencies are “an immature asset class that has little history, no inherent economic value, no cash flow, and can create havoc within a portfolio.”
The shift reportedly came in response to strong client demand and improving regulatory conditions.
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Trump administration regulators have taken a more favorable outlook on blockchain technology and digital assets. The Commodity Futures Trading Commission this month approved the trading of spot cryptocurrency products on U.S.-regulated exchanges. The agency has also launched a pilot program to allow digital assets such as Bitcoin and Ethereum to be used as collateral in derivatives markets.
Meanwhile, the Securities and Exchange Commission in August announced “Project Crypto,” an initiative to bring U.S. markets on-chain. SEC Chair Paul Atkins has also teased an “innovation exemption” to support cryptocurrency startups.
On the legislative front, President Donald Trump in July signed the GENIUS Act, providing guidelines for U.S. stablecoin issuers. Lawmakers are also working on highly anticipated market structure legislation that would clarify which digital assets are commodities and which are securities.
