Data: The application of Blockchain in the Financial Service sector in 2025

Imagine a world like this.

Every financial transaction, whether it's a small coffee purchase or a multimillion-dollar business deal, can be completed securely and transparently within seconds.

This is not an unattainable dream, but a reality shaped by blockchain technology in the financial services sector. Blockchain is no longer limited to cryptocurrencies; it is fundamentally changing the way financial institutions operate.

The statistics reveal how important this technology has become for enhancing trust, efficiency, and scalability in the financial sector.

Advantages of Blockchain

82% of financial executives believe that the transparency of blockchain can improve fraud detection. Data shows that by integrating blockchain into payment and settlement processes, financial institutions save $27 billion annually.

Smart contracts eliminate intermediaries, allowing institutions to save up to 50% on legal and operational costs by 2025.

The scalability of blockchain increased by 62% during the high demand period in 2025.

Growth of the Blockchain Market in Banking and Financial Services

The global blockchain market for banking and financial services is expected to grow at an astonishing compound annual growth rate of 52.9% between 2024 and 2029. The market value is projected to increase from $6.98 billion in 2024 to $58.2 billion in 2029, highlighting the immense potential of this sector.

• In 2026, driven by the increase in cross-border transactions and decentralized financial applications, the market may exceed 16 billion dollars.
• From 2027 to 2028, the market will enter a phase of rapid growth, with financial institutions expanding blockchain integration, and the market size is expected to exceed $37 billion.

This rapid growth highlights the increasingly important role of blockchain in terms of security, transparency, and cost efficiency within the global financial system.

Figure: Growth of the Blockchain Market for Banking and Financial Services

Source: The Business Research Company

Preparing for a “Stablecoin First” Future

From January to July 2025, the trading volume of stablecoins reached 4 trillion USD, an increase of 83% year-on-year, with an estimated total of nearly 8 trillion USD for the entire year of 2025.

• The adoption of stablecoins in cross-border payments has reduced transaction costs by up to 96%, with fees dropping to a minimum of 0.5%.
• The average settlement time for stablecoin payments is now under 10 minutes, much faster than traditional banks.

Central banks from more than 16 countries, including the United States, China, the United Kingdom, and Japan, are piloting regulatory frameworks for stablecoins. Among them, over 75% of banks in the United States are exploring or piloting the integration of stablecoins for remittances and settlements.

Simplified Payment System

In 2025, the application of blockchain in payment reconciliation reduced the error rate by over 90%, improving efficiency and satisfaction. A real-time full settlement system utilizing blockchain processed over $30 trillion in transactions.

Blockchain payment networks have reduced the average cost of cross-border transfers by 30% to 40%, with some solutions costing less than 1%.

In addition, 84% of fintech companies worldwide have incorporated blockchain as part of their payment infrastructure.

Blockchain Market Distribution by Industry

Banking Industry

The largest share, accounting for 29%-30%, is driven by the adoption of blockchain in cross-border payments, trade finance, and digital identity solutions.

Manufacturing

The proportion is 21%-22%, as blockchain is increasingly used for supply chain transparency, inventory tracking, and smart contract automation.

Professional Services Industry

Accounting for 6%-7%, reflecting the application of blockchain in auditing, compliance, and legal document verification.

Retail

accounting for 6%, driven by its application in loyalty programs, product certification, and customer data security.

Other Industries

It accounts for 35%, covering multiple industries such as energy, healthcare, and logistics, where blockchain supports secure data exchange and process efficiency.

Figure: Blockchain Market Distribution by Industry

Source: Statista, Scoop.Market.us, Grand View Research

Enhancing Trade Finance

In 2025, blockchain applications in the trade finance sector handled over $1.7 trillion in business volume, representing a significant increase compared to 2023. Smart contracts in trade finance reduced processing times by more than 40%, providing businesses with faster access to liquidity.

• Compared to traditional systems, blockchain-supported trade finance in 2025 has increased financing opportunities for SMEs by 32%.
• The blockchain-driven letter of credit system now accounts for 21% of global letter of credit transactions, significantly reducing the risk of fraud.

89% of surveyed financial institutions reported that the transparency and trust in trade finance improved after using blockchain.

Revolutionizing Asset Management

In 2025, 59% of global asset management companies actively use blockchain for portfolio management.

• Smart contracts automated 22% of asset service processes, reducing human errors by 72%.
• Using blockchain in asset management has reduced transaction costs by up to 30%, broadening investment channels for smaller participants.

Asset-backed tokens increased by 212% year-on-year, with gold, real estate, and private credit being the leading categories.

The blockchain-based tokenization platform has processed over $600 billion in real-world assets, covering real estate, artworks, and equity.

In addition, BlackRock launched a blockchain-integrated fund linked to a $150 billion government bond trust in 2025, leading institutional adoption.

Innovating the Insurance Industry

62% of major insurance providers, including AXA and Allianz, are using blockchain for underwriting and claims management.

Blockchain-based parametric insurance will enable real-time automatic payouts, reducing manual processing and accelerating the disaster relief speed for climate-related claims.

In 2025, blockchain-based insurance platforms processed over $3.11 billion in claims, with the market size expected to reach $12.7 billion.

Blockchain-supported insurance has reduced premium costs by up to 18%, widening access for low-income consumers. The automation of smart contracts has shortened the insurance claims processing time by 50%, achieving claims settlements in hours rather than days, thereby improving customer satisfaction.

Fraudulent claims in blockchain-based systems are reduced by 25%-33%, saving insurance companies up to $87 million annually.

Modern Regulatory Compliance

In 2025, the immutable ledger of blockchain will have reduced compliance-related fraud by 51%, enhancing the credibility of reporting. The application of blockchain in cross-border compliance has increased transparency, helping to prevent tax evasion in an additional 34% of jurisdictions.

The simplification of anti-money laundering processes through blockchain has reduced operational costs by up to 45% and increased detection rates by 57%. 88% of financial institutions utilizing blockchain report improved regulatory accuracy.

Centralized blockchain solutions have automated 33% of compliance reporting tasks, significantly reducing human errors.

Blockchain-based automated KYC solutions reduce account opening time from 26 days to under 5 minutes, saving over $175 million annually.

It is reported that regulatory technology companies using blockchain raised $7 billion in funding in 2025, a significant increase compared to previous years.

Promoting Financial Inclusion

In 2025, nearly $100 billion globally, accounting for 15% of remittances, will be processed through blockchain, with costs reduced by up to 70%.

The adoption of blockchain in microinsurance schemes has provided affordable insurance to more than 135 million people in developing countries. In Sub-Saharan Africa, blockchain-driven mobile banking solutions are expected to increase access to financial services by 52% by 2025, driving local economic development.

• Blockchain-based financial services cover over 2.7 billion unbanked individuals worldwide, growing by 40% since 2022.
• The blockchain-based peer-to-peer lending platform has processed loans worth $176.5 billion, expanding access to low-cost credit.
• Blockchain-based digital identity solutions have enabled over 470 million people to access financial services for the first time.

The crowdfunding platform utilizing blockchain is expected to raise over $20.46 billion by 2025 to support entrepreneurship in underserved areas.

Recent Developments

In 2025, driven by global ESG demand, the blockchain-based carbon credit trading market is expected to exceed $354 million and continue to grow strongly.

1

• Ethereum's “merge” has reduced energy consumption by over 99.98% by 2025, now using only about 0.0026 terawatt-hours per year, achieving nearly zero carbon footprint.
• Ripple's Liquidity Hub is actively expanding in 2025, enabling enterprises to access digital asset liquidity and enhance cross-border payment efficiency.

2

• The EU's MiCA framework will be fully implemented in January 2025, coordinating the regulation of digital assets across all member states.
• India's blockchain-based e-Rupee will reach over 7 million pilot users by 2025, with the Reserve Bank of India focusing on programmable central bank digital currency use cases.
• The mBridge platform of the Bank for International Settlements matures by the end of 2024 as a minimum viable product supporting real-time cross-border central bank digital currency settlements, with further expansion in 2025.

3

Major fintech companies including PayPal and Square launched real-time anti-money laundering screening, data encryption upgrades, and stablecoin integration combined with blockchain analysis in 2025 to enhance transaction security.

Conclusion

Blockchain is no longer just a buzzword in financial services; it has become the cornerstone of transformation. From simplifying payment systems to enhancing trade finance, and innovating regulatory compliance, blockchain has repeatedly proven its value.

Statistics highlight the growing influence of blockchain, with more and more institutions embracing it to improve transparency, efficiency, and inclusivity.

Whether driving the robust development of stablecoins or enabling billions of people to access financial services, blockchain is redefining the global financial landscape, changing the world one transaction at a time.