by Benjamin Duve, Global Head of Partnerships at GK8 by Galaxy Have you ever tried explaining a landline phone to a teenager? It’s like describing a relic from another world: rotary dials, tangled cords, and staying tethered to one spot while talking. The same puzzled reaction might greet mention of rewinding a video tape before returning it, or checking whether there’s enough paper in the fax machine before the weekend. In a world where smartphones stream entertainment, emails replace paper trails, and video calls are the norm, once-essential technologies seem almost unrecognizable. The shift to digital tools and platforms has been nothing short of revolutionary, reshaping how we communicate, work, and consume content in ways we couldn’t have imagined just a few decades ago. Today, a similar evolution is unfolding in the world of finance. Just as technology reshaped communication, we are seeing a transformation in the way we think about money and investing, with the increasingly widespread adoption of digital assets, decentralized finance (DeFi), and tokenization. Innovations in finance are challenging long-standing norms and opening doors to the future of money, much like smartphones did for communication. We may only be moments away from your kids asking what a debit card was, while paying for a moon dust milkshake with a fractionalized token from their digital wallet. Like all transitional periods, they are harder to spot in the moment, but with a bird’s eye view learned from previous revolutions, we can ask serious questions about what’s coming next in finance and how to prepare for it. Financial transformation One of the most striking aspects of this financial transformation is how quickly the landscape is evolving. Digital assets and DeFi are part of mainstream conversations among investors, institutions, and policymakers alike. This shift we’re experiencing is about more than just technology. It’s about redefining trust. For centuries, our financial systems have relied on intermediaries—banks, brokers, and regulators—to ensure the safety and efficiency of transactions. But blockchain technology, smart contracts, and tokenized assets challenge this model by enabling systems where code, rather than institutions, ensures transparency and accountability. Traditional finance is more essential than ever in this evolving landscape. The transition to digital finance isn’t about replacing the old with the new but about creating a future where both coexist and thrive. For the public to fully embrace this next stage of finance, banks and other traditional institutions must play a pivotal role as enablers—leveraging their expertise, infrastructure, and trust to bridge the gap and integrate these innovations into the global financial system. The digital investor: A new paradigm One of the most profound changes is how individuals interact with their money. For decades, investing meant visiting a bank, meeting with an advisor, and choosing from a limited menu of products. Today, it’s as easy as opening an app, exploring decentralized protocols, and executing trades instantly. This new level of accessibility is reshaping expectations. Investors, especially younger generations, are drawn to platforms that offer transparency, control, and the ability to participate in markets that were once out of reach. They’re not just buying stocks or bonds—they’re staking tokens, participating in governance decisions, and exploring yield strategies that are inconceivable with traditional finance models. Yet, with this empowerment comes responsibility. The absence of traditional safeguards means investors must navigate risks independently, from market volatility to smart contract vulnerabilities. This underscores the need for education and innovation in areas like digital asset custody, security, and risk management. Bridging the gap Traditional finance and digital assets need to and will coexist, with each influencing and learning from the other. We’re already seeing this convergence in areas like tokenized securities, where traditional assets are being represented on blockchains, and in partnerships between established institutions and crypto-native firms. Regulation will play a pivotal role in shaping this future. Striking the right balance will be crucial—too much regulation risks stifling innovation, while too little leaves consumers and markets vulnerable. The good news is that regulators and industry leaders are increasingly working together to create frameworks that protect investors while fostering growth. Preparing for what’s next If there’s one lesson to take from previous technological revolutions, it’s that adaptation is key. The companies that thrived during the transition from landlines to smartphones weren’t necessarily the ones that dominated the old paradigm. Nor were they always the move-fast/break-stuff mavericks of the new tech. Instead it was the visionaries who embraced change and reimagined their roles in the new landscape that led the way. The same will be true in finance. Success won’t come solely from curiosity or open-mindedness but from those who make the transition with care and foresight. The winners will be the institutions that embrace innovation while safeguarding public trust—protecting their reputations and rigorously testing their options to ensure a secure and reliable path forward. The financial revolution we’re living through is as profound as it is complex. It’s an opportunity to build systems that are not only more efficient but also more inclusive and resilient. The future of money is taking shape, and we all have a role to play in defining it. Legal Disclosure: This document, and the information contained herein, has been provided to you by Galaxy Digital Holdings LP and its affiliates including GK8 (“Galaxy Digital”) solely for informational purposes. This document may not be reproduced or redistributed in whole or in part, in any format, without the express written approval of Galaxy Digital. 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