OMFIF has established a working group to examine the integration of public blockchain systems into the traditional financial system, particularly within banks.
Although the benefits of blockchain for the financial industry are increasingly well understood, public permissionless blockchains still present regulatory challenges for banks. Private blockchains emerged as a compromise, offering distributed ledger functionality without public blockchain exposure. However, these brought their own challenges and trade-offs.
With increased acceptance of digital assets from US policy-makers and institutions in the US, momentum has been building to overcome the regulatory barriers preventing public blockchain adoption in the US. As leading US institutions begin to take steps towards adoption, other countries are expected to follow.
For this process to advance both quickly and safely, regulators and decision-makers at traditional institutions need to develop a clear understanding of the capabilities of public blockchain protocols so that an effective policy framework can be established. This means dispelling persistent myths, demonstrating that public blockchains can provide a robust, scalable infrastructure for financial markets and identifying where existing regulation might prevent their adoption.
Public Blockchain Working Group
Between May and September 2025, the working group brought together experts from Stellar Development Foundation, Ripple, Aptos Labs, Minsait and Hedera with commercial banks and regulators in six private meetings. These discussions explored the technical features of public blockchains and the policy approaches needed to enable their adoption by traditional financial institutions.
Candace Kelly, chief legal and policy officer, Stellar Development Foundation said: ‘The project is a fantastic opportunity to engage with policy-makers and regulators to demonstrate how public blockchains are making banking and financial services faster, cheaper and more efficient, and still meet or exceed the compliance and security standards of traditional finance.’
‘Public blockchains are the digital highways of the future, offering enhanced liquidity and transparency while fostering innovation that private ledgers simply can’t match, said Matthew Osborne, policy director for UK and Europe, Ripple. ‘We’re proud to collaborate with OMFIF to further realise the benefits of this borderless, transparent infrastructure, while meeting the high standards required for regulated financial activity.’
The project will conclude with a report synthesising the conclusions of these meetings into a coherent set of policy recommendations. Participants have helped shape these recommendations and contributed thought leadership to the final publication.
Solomon Tesfaye, chief business officer at Aptos Labs, said ‘Collaborating with OMFIF and leading institutions helps ensure the vision of a secure, scalable public blockchain is grounded in both technical excellence and regulatory alignment, paving the way for a more inclusive and resilient financial system.’
A spokesperson for Hedera said ‘Hedera is proud to collaborate with OMFIF and industry peers on this important initiative,’ while Minsait emphasised that ‘Interoperable permissionless blockchains are poised to transform financial services, giving regulators confidence through greater transparency and reduced single points of failure, while enabling inclusive innovation.’
The report will be launched at the Insights Forum during the Singapore Fintech Festival, accompanied by a high-level roundtable to discuss the findings. An OMFIF virtual launch will also be held, offering working group participants an opportunity to showcase their contributions to building a robust ecosystem for finance on public blockchains.
‘We are at a tipping point for the integration of blockchain into the financial system,’ says Katie-Ann Wilson, managing director of OMFIF’s Digital Monetary Institute. ‘The technology has matured, the benefits are clear and momentum is building, but progress will only be possible if regulators and technologists truly understand each other. This project directly addresses that gap, bringing together leaders from banking, technology and policy to chart a path forward that is both innovative and responsible.’
Register now to secure your place at the virtual launch.
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