Over the course of our Crypto & Blockchain Series, we’ve explored how blockchain is transforming industries, from branding and finance to regulation and banking. In our first episode, German Ramirez shared his expertise on building blockchain brands and how crypto is redefining financial services. We then delved into the regulatory landscape with Manpreet Kaur, uncovering the complexities of virtual asset licensing. In our third episode, Anna Basangova provided a deep dive into how traditional banks are integrating cryptocurrencies into their strategies.
Now, in the final episode of our series, we turn to Amarjit Singh, a Partner at EY, to discuss the future of blockchain in digital banking. With decades of experience in financial services, Amarjit offers unparalleled insights into the regulatory hurdles, innovation opportunities, and long-term implications of blockchain technology.
(Disclaimer: I am speaking as my own and giving my personal opinions as opposed to speaking on behalf of EY.)
Navigating Blockchain’s Regulatory Maze
Amarjit highlights the unique challenges that digital banks face as they incorporate crypto assets into their services. From structuring offerings to aligning with regulatory frameworks like MiCA and ensuring compliance with regional expectations, the task is anything but straightforward. "Crypto is new," Amarjit says, emphasizing the lack of harmonized regulations and precedents. For digital banks, the journey involves balancing compliance costs with innovative use cases while maintaining their unique selling propositions.
Leveraging DLT for Seamless Banking
Distributed ledger technology (DLT) offers transformative potential, particularly in cross-border transactions and enhancing customer engagement. Amarjit likens DLT to the PC in 1984—an emerging technology with boundless possibilities. He notes the importance of network effects for widespread adoption, drawing parallels to tech wars like VHS vs. Betamax. Successful integration will hinge on creating seamless user experiences, with technology operating invisibly in the background.
The Appetite for Crypto Innovation
While the initial enthusiasm for crypto offerings has cooled, Amarjit sees a resurgence in interest, albeit geographically segmented. "UK and US firms are approaching innovation differently now," he observes. Despite challenges, firms are re-engaging, exploring how crypto can enhance their value propositions without compromising user experience.
Blockchain’s Five-Year Horizon
In the next five years, Amarjit predicts a hyper-specialized digital banking landscape. Blockchain technology will underpin innovations in digital IDs, trading platforms, and custodial services, driving transparency and security. He sees blockchain as the foundation for democratizing investments, reducing credit risks, and transforming linked areas like digital government.
Real-World Applications
Amarjit also shares exciting blockchain initiatives, from fractional shares democratizing investments to projects driving down settlement risks. He envisions a future where entire financial systems run on DLT rails, fostering a holistic ecosystem that links back-office operations to front-end innovations seamlessly.
A Final Thought
As our conversation draws to a close, Amarjit reflects on the opportunities and challenges ahead: "The rails of financial services are changing, offering exciting times for the industry. But it’s not easy—there’s a lot of work and collaboration needed to fully realize the potential of blockchain."
C-Innovation Analysis: Our Take on Blockchain’s Role in Digital Banking
At C-Innovation, we view blockchain’s role in digital banking as an evolution, not a revolution—at least not yet. The divergence between the US and UK approaches signals that blockchain is no longer about ideological disruption but about practical financial applications.
Digital Banks Need to Build on Customer Trust, Not Just Hype
For digital banks, the challenge is not blockchain itself, but how it enhances the core value proposition without alienating customers. Early enthusiasm led many fintechs to launch crypto trading features, but user adoption has been mixed. The digital banking sector is built on simplicity, trust, and user experience—all of which must be preserved as banks explore blockchain.
UK firms like Revolut and Ziglu integrated crypto into retail banking but have had to adjust offerings due to regulatory shifts and customer uncertainty.
US banks, on the other hand, have taken a risk-averse stance, focusing on institutional blockchain use cases rather than direct consumer crypto adoption.
The key takeaway? Digital banks must integrate blockchain in ways that reinforce user trust, not just chase trends.
The Future of Blockchain in Digital Banking is Invisible
Amarjit likened blockchain’s trajectory to the PC revolution of the 1980s—we agree, but with a caveat: its success will be measured by how invisible it becomes to end users.
Consumers don’t need to see blockchain; they need to feel the benefits—instant settlement, reduced fraud, and seamless transactions.
Digital banks should focus on DLT-driven efficiencies that make payments faster, compliance easier, and transactions more transparent—without branding everything as ‘crypto’.
This is where cross-border payments and programmable finance (like automated loan contracts) will become the real use cases of blockchain in digital banking.
Specialization Will Define the Winners
Over the next five years, blockchain adoption won’t be universal—it will be specialized. Some digital banks will leverage it to improve settlements and security, while others will use it to offer tokenized assets or new credit models.
The difference between winners and those who fade out will be:
Regulatory adaptability – Banks that align with MiCA and US frameworks will scale.
Customer education – The best blockchain-based banking products will be frictionless and intuitive.
Infrastructure, not speculation – Digital banks that use blockchain to enhance finance, not gamble on it, will lead.
At C-Innovation, we see blockchain empowering digital banks, not replacing them. The key is purpose-driven adoption—not just adding crypto as a feature, but using blockchain to solve real banking challenges.
For an in-depth exploration of these topics and more, tune in to the full episode with Amarjit Singh (on top of the page). Discover how digital banking is harnessing blockchain to create a secure, transparent, and innovative financial ecosystem.
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