What if the world’s largest banks suddenly started using the same technology as your crypto wallet? What if the hundreds of trillions of dollars in traditional finance (TradFi) finally flowed onto the blockchain via a secure bridge? According to Sergey Nazarov, co-founder of Chainlink, this is no longer a dream scenario but a process already well underway.
In a new podcast with Michaël van de Poppe, Nazarov explains why the convergence of DeFi (Decentralized Finance) and TradFi is inevitable. “You don’t build a system for the 363 days a year when everything runs smoothly,” he states. “You build it for the two days when the world goes crazy.” According to Nazarov, blockchain is the only technology that remains reliable when traditional systems fail, and institutions are finally beginning to understand this.
From Speculation to Global Standard #
Where crypto was previously focused on quick gains and volatile markets, Nazarov sees a shift toward serious infrastructure. Banks and asset managers are no longer just looking at the price of Bitcoin, but at the efficiency of the technology behind it. “Why trade on markets that close on the weekend and settle slowly when you can have a 24/7 market that is instant and transparent?” he asks.
The key lies in tokenization: the digitization of real-world assets like real estate, stocks, and funds. This unlocks an enormous amount of capital that is currently trapped in outdated systems.
What Does Chainlink Actually Do? #
Chainlink started as a way to get reliable data (like prices) onto the blockchain. It is now much more than that. It acts as the universal translation layer between the old financial world and the new blockchain world. With protocols like CCIP (for communication between blockchains), Chainlink ensures that banks can connect their existing systems to any blockchain without having to build new infrastructure for each chain.
Why the Tide is Turning Now #
Nazarov points to a remarkable shift in sentiment, partly due to changing political winds in the US. “A year ago, a positive stance from regulators was unthinkable. Now it’s a complete 180-degree turn.”
This doesn’t mean banks will disappear, but that they will evolve. “Consumers still want the security of their bank, but they also want the benefits of crypto,” Nazarov explains. The future is not ‘crypto or banks,’ but a hybrid system in which Chainlink forms the crucial connection.
Behind the scenes, the infrastructure is being built to withstand any crisis. And once that bridge is in place, the path is clear for institutional capital to enter the market. Watch the full conversation below.