Paul Brody, global blockchain leader at EY and co-author of the 2023 book *Ethereum for Business*, discusses blockchain’s transformative impact on finance and corporate roles with Global Finance. Today, blockchain transactions primarily involve stablecoins—cryptocurrencies pegged to stable assets like the US dollar—rather than bitcoin. Last month alone, the Ethereum ecosystem processed $2 trillion in stablecoin payments, mostly in dollars. Stablecoins are especially popular in emerging markets prone to inflation, where demand for US dollars remains high. They facilitate near-instant, low-cost cross-border remittances, bypassing traditional slow and expensive systems. Brody emphasizes the need for well-regulated stablecoins backed by real assets, contrasting this with the uncertain motivation behind central bank digital currencies (CBDCs), which have struggled due to unclear objectives. CFOs and treasurers face important questions on integrating stablecoins and blockchain into payments, treasury management, and contract automation—capabilities most companies currently lack. Stablecoin issuers profit mainly through transaction fees and interest on reserves, but low rates and fierce competition compress margins. For banks, blockchain technology could diminish roles tied to transaction processing—credit card and wire transfer fees, which are high compared to negligible stablecoin transfer costs.

However, regional banks focused on corporate finance may see less impact. Custody banks like BNY Mellon and JPMorgan stand at a crossroads: While blockchain challenges them, their asset management expertise positions them to enable tokenization, offering growth opportunities. Brody highlights smart contracts’ potential to digitize all types of assets and agreements, yet adoption is limited by current privacy shortcomings on blockchains. Private blockchains don’t ensure confidentiality among participants, unlike traditional expectations. Advances akin to early internet encryption are addressing this. He predicts all banks will adopt some form of distributed ledger technology (DLT) services, expanding offerings to include cryptocurrencies and novel payment methods. When asked about blockchain’s “killer app, ” Brody points to stablecoins as the catalyst bringing wide adoption on-chain, with upcoming competitive, yield-bearing versions. Ultimately, Brody sees blockchain as a fundamental force reshaping not just global finance but all commerce. It promises to unify money, contracts, and goods—historically managed in separate systems—streamlining costly processes like bill payments through instant, automated reconciliation. In 10 to 15 years, blockchain-based back-end infrastructure will become a universal, invisible part of business operations, revolutionizing efficiency worldwide.