Aave Labs founder Stani Kulechov argues that blockchain technology could represent the next evolution in finance, as traditional financial systems increasingly pivot toward fintech—and potentially decentralized solutions—amid widespread dissatisfaction with legacy banking.
The Fintech-to-Blockchain Transition
Kulechov highlighted at EthCC 2025 that crypto has a unique opportunity to onboard traditional finance participants who’ve already embraced fintech alternatives after encountering poor banking experiences:
"We’ve seen massive migration of financial activity to fintech due to subpar banking services. Fintech apps have captured significant market share by offering superior user experiences."
He emphasized that Aave Labs and other DeFi projects are actively exploring ways to bridge this utility into decentralized ecosystems:
- Digital wallet adoption: Over 60% of the global population uses digital wallets (though not yet blockchain-based).
- Continuum of adoption: The challenge lies in transitioning existing digital finance users to on-chain solutions.
Tokenized Real-World Assets: A Multi-Trillion Dollar Opportunity
Kulechov identified real-world asset (RWA) tokenization as a pivotal gateway for traditional finance:
| Asset Class | Potential Impact |
|------------------------|-----------------------------------------------|
| Real Estate | Enhanced liquidity and transparency |
| Government Bonds | Programmable yield environments |
| Corporate Debt | Fractionalized investment opportunities |
"A more programmable, transparent ledger can optimize efficiency for these assets—and unlock entirely new financial instruments," he added.
DeFi’s Competitive Edge
To achieve mass adoption, Kulechov stressed that DeFi must outperform traditional systems by an order of magnitude:
- Solve real problems: Address gaps left by traditional finance (e.g., cross-border inefficiencies).
- 10x better UX: Prioritize simplicity and accessibility to compete with fintech apps.
"If we want to change finance, we need to build solutions that are radically superior."
Blockchain Adoption in Traditional Finance
Institutional players are already integrating blockchain:
- BlackRock’s BUIDL: A tokenized money-market fund launched in 2024, now valued at $2.8B+.
- Libre Capital: Tokenizing $500M in Telegram debt for on-chain collateralization.
👉 Explore how RWAs are reshaping finance
FAQ
Q1: Why would traditional finance shift to blockchain?
A: Poor banking experiences drive users toward fintech—and eventually DeFi—for better transparency, efficiency, and programmability.
Q2: What’s the biggest barrier to DeFi adoption?
A: UX hurdles. DeFi must match fintech’s ease-of-use while offering clear advantages (e.g., lower fees, borderless access).
Q3: How does RWA tokenization benefit institutions?
A: It unlocks liquidity for illiquid assets (e.g., real estate) and enables composability in financial products.
👉 Learn how Aave’s RWA strategy works