Blockchain is disrupting Fintech creating an entirely new market for new financial solutions that scale faster, are more affordable and transparent, enhance security, and are more accessible.

The global blockchain market size experiencing seismic growth with an expected US$67.4bn by 2026. The rapid expansion was caused by a few reasons:

  • growth in investments and venture capital funding
  • cybersecurity applications that started adopting blockchain technology
  • access to smart contracts and digital identities
  • actions from governments

In the article, we will discover the top blockchain use cases in fintech, the benefits of blockchain in fintech, and the future of technology.

Need help with software development? Contact us now
Get a quote

Fintech and blockchain

The word “blockchain” has been circulating in the tech world for a while now. It is sort of a buzzword that points out something significant and, by all means, blockchain is worthy of attention. But, what does “blockchain” mean? What does it do? Let’s proceed to find answers.

Blockchain in Fintech: A Disruptive Revolution

What is blockchain technology?

Blockchain is used as a means of recording cryptocurrency (i.e. Bitcoins, Ether) transactions, but it also has other applications. Each transaction of a kind belongs to the blockchain and numerous computers (nodes) on the internet validate it.

Being decentralized, this system works precisely and never adds invalid transaction blocks to the chain. Every fresh block added to the previous one is generated from its preceding block by cryptographic hash. This process makes the chain complete without breaking it and ensures every block of the chain is recorded continuously.

Types of Blockchain

Blockchain in the fintech industry has three different types:

1. Public

In a public blockchain, there are two most common implementations – Bitcoin and Ether cryptocurrencies. Anyone, who has a decent internet connection can access these cryptocurrencies as easily as pie and validate transactions online being just like a node.

2. Private

A private blockchain belongs only to one party. It takes part in database management, content management in the company, and auditing. For example, there are such platforms as MultiChain and Eris, which have cryptographic verification and are centralized. Here, the nodes are preliminarily determined.

3. Consortium

A consortium blockchain is in-between the public and private blockchains. It may be managed by an abundance of institutions and the consensus process is predefined by a set of nodes. The ability to read blockchain is restricted or public.

three (3) types of blockchain

Impact of Blockchain on Fintech

Blockchain is already having a significant impact on the fintech industry, with several well-known fintech companies and fintech startups incorporating blockchain into their products and services. For instance, Ripple uses this technology to enable fast and low-cost cross-border payments. Circle uses blockchain to create a peer-to-peer payments network. A global leader in financial services JPMorgan has developed its own blockchain platform, Quorum, which is being used for various financial applications such as cross-border payments, securities trading, and supply chain management.

Modern services and products can benefit from including blockchain in fintech applications as they:

  • enhance security in financial transactions by creating a transparent and tamper-proof record of transactions
  • increase efficiency in financial transactions by reducing the need for intermediaries and streamlining processes
  • enable new financial products and services, such as decentralized finance (DeFi) applications, that offer greater transparency and accessibility

Let’s discover more benefits of using blockchain in fintech.

Blockchain Benefits in Fintech

From transaction transparency to regulatory compliance, here are some benefits of blockchain technology in fintech.


One of the advantages of blockchain in fintech is that technology provides a transparent record of transactions that can be accessed by authorized parties, increasing accountability and reducing the risk of fraud or identity theft.

Audit and KYC compliance

KYC or Know Your Customer, which is the mandatory obligation of financial institutions to verify the client’s identity while they open an account. According to Fintech Global, blockchain is valuable for audit and KYC compliance. It stores data (e.g. inventory, identification, and legal contracts) in a secure and verifiable system ensuring a strong audit trail with immutable records of due diligence procedures, and shared documents.

Improved Security

Shared ledgers help financial institutions better secure transaction information. They can quickly complete a transaction and reduce the risk of someone diverting payments. It works in a way that 2 security keys exist for each transaction.

  • A public key is available for every user
  • A private key is shared between the parties of a particular transaction.

Smart contracts

Blockchain use in fintech enables the usage of smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. This eliminates the need for third-party and can reduce costs and processing times for financial transactions.

benefits of blockchain in fintech

Blockchain use cases in Fintech

When it comes to blockchain in fintech usage, the first to come to mind are cryptocurrencies as a digital asset that has been immensely exploited worldwide. As it is known, Fintech belongs to the quick-developing financial industry and produces technologies that help it become better by enhancing banking services and making consumer experience improved.

In fintech, blockchain is the technology that impacts financial industry growth and contributes to the ongoing revolution. 77% of the financial sector industry looks forward to adopting blockchain technology as soon as possible. Besides, by changing banking into a seamless and effective experience, blockchain in the fintech industry can eliminate bureaucracy and corruption and save up costs. All of these possibilities will influence fintech startup competition. Young talents will brainstorm ideas to promote the banking industry and try to obtain as much attention as possible to make these ideas a reality.

So far, there are four major uses of blockchain in the financial sector. These include:

Smart contracts

There is a computer code, which runs on top of blockchain and contains specific rules. These rules are preliminary agreed upon as a means of interaction by the contract parties. When the rules are being met, the agreement takes effect. This contract is also able to facilitate, verify, and enforce the negotiation or performance of an agreement or transaction.

Digital payments

Money transfer to someone abroad has a lot of steps and institutions to visit. Hence, it may become a slow boring process leaving you to overspend on this type of financial operation. However, using blockchain for financial services makes the transfer process easier and faster. And, what’s more, it will cost fairly little in comparison to traditional banking services.

Digital identity

Choosing the way you appear and who can see your identity can be done with the help of blockchain technology. If you have once registered on the blockchain, there is no need to register everywhere else for if service providers are connected to the blockchain, one-time registration is applicable everywhere.

Share trading

To buy or sell the shares and stocks you have, it takes to go through a certain procedure and communicate with brokers at the stock exchange market. With the help of blockchain, some of the mediators can be eliminated. Here, due to being decentralized and providing high levels of security, blockchain allows stakeholders to validate transactions. This makes the trading of shares faster and with more precision.

Therefore, fintech and blockchain are inseparable and aim at one common future that might give lots of innovations for the fintech industry and attract tech-savvy clients, who already fish for new digital banking benefits, of course.

Also, read about the benefits of blockchain in Real Estate!

Successful blockchain solutions for Fintech

There are lots of blockchain technology in fintech solutions available on the market. Here is our list of the top ones:


The company developed a mobile app that enables investment in stocks, stock funds, and cryptocurrencies with no fee. The Robinhood Crypto platform allows users to buy and sell digital currencies (Bitcoin, Litecoin, Ethereum, Ethereum Classic, Bitcoin Cash, and Dogecoin). 


Ripple is a blockchain-based payment system that uses the XRP cryptocurrency to enable fast and low-cost cross-border payments. Their business goal is to make the global payment system more efficient and affordable by eliminating intermediaries and reducing settlement times.


Coinbase is a company that runs a cryptocurrency exchange platform. It allows users to buy, sell, and store cryptocurrencies (e.g. Bitcoin, Ethereum, and Litecoin). It offers its users a variety of payment options, making it a popular choice for both beginners and experienced cryptocurrency investors.


Circle is a blockchain-based peer-to-peer payments network that allows users to send and receive payments quickly and securely using fiat currencies or cryptocurrencies. The company wants to create a more accessible and affordable payment system that will be independent of traditional financial institutions.


Stellar is a  payment system that uses the Lumens (XLM) cryptocurrency to facilitate fast and low-cost cross-border payments. The goal was to create a more accessible payment system that can be used by anyone, regardless of their location or financial capability.

What’s in the Future for Blockchain in Fintech?

Blockchain is still a new technology that has to be fully researched regarding its potential. Last year most of the blockchain startups lost their battle with meeting investors’ expectations. This is no surprise as blockchain is an immature technology after all. If artificial intelligence, augmented reality, and machine learning are skyrocketing, blockchain needs gradual development and advancement so as not to fail from the beginning. The reason for taking their time lies in the fact that most businesses should be cardinally transformed to meet blockchain and live with it accordingly. Statistics say that by 2023 only some of the organizations, i.e. 10%, will welcome blockchain and transform their businesses beyond recognition to comply with the technology’s requirements.

             Check out the latest financial technology trends in the US !

What concerns blockchain and fintech, the implementation will be faster and less complex. Only financial services will gain the desired profit and achieve business value. What’s more, blockchain’s impact on financial services will be budget-enriching by saving costs on transactional operations. Furthermore, it will assist in the creation of newer cryptocurrencies (especially national ones) that will be regulated by monetary policy in every country.

Consider Inoxoft Your Trusted Partner

Inoxoft is an outsourcing software development company that helps clients resolve their challenges by covering Fintech and blockchain solutions. We deliver feature-rich solutions for financial markets that include behavior analytics, advanced dashboards, voice payment technology, robo-advisors, expense forecasting the usage of biometric data, live chatting, etc.

With deep industry expertise, our engineers will help you implement your ideas and choose the best decisions for your business.

NFT Marketplace for Creators and Collectors

The client aimed to develop a web-based NFT platform that makes digital art authentication simple and secure. Inoxoft created the first NFT-based social network developed as a marketplace for artists unfamiliar with blockchain technology. The platform provides tools and functionality for converting digital artworks into NFTs, enabling creators to sell their works directly.

Final Thoughts

With such a wide field for inventions and cutting-edge solutions, there’s going to be much fintech startup competition to initiate changes and win both the media’s and investors’ attention. Blockchain has much to give the industry: fast procedures, less cost spending, top fintech security, and transparency that will make this field innovative and prosperous within no time. So let’s discuss what the technology may offer your business! 

Frequently Asked Questions

How is fintech related to blockchain?

Blockchain is a technology implemented by many companies in the Fintech domain to improve the security and efficiency of their products and financial services. Blockchain enables faster and more secure transactions, reduces costs, and increases transparency in financial transactions.

Which fintech companies are using blockchain?

Many Fintech companies use blockchain as it is a promising technology that disrupts the industry. We've highlighted the top list:

  • Robinhood 
  • Ripple
  • Coinbase
  • Circle
  • Stellar