# What TradFi Really Wants From Blockchain According to a16z, TradFi uses blockchain for operational efficiency, not decentralization. - **Source:** [CryptoPotato](https://brifing.si/source/bd22636b-ec8d-42a8-8cca-1937c50e0f6c) - **Published:** 2026-07-18 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/30c372f0-1f1c-4504-9e95-3d70c5202f8f ## Blockchain's Role in TradFi Traditional financial institutions are adopting blockchain technology not for decentralization but to reduce operational costs and increase transaction speed. This approach positions the technology as a business tool. ## Selective Adoption Institutions are adopting only those elements of DeFi that align with their regulatory and operational needs, transforming blockchain-based finance into something distinct from both TradFi and DeFi. ## Programmable Financial Infrastructure Institutions are leveraging blockchain to develop programmable financial infrastructure that meets institutional needs while utilizing the technology's core features. ## Example Applications JPMorgan's permissioned blockchain for institutional deposits and BlackRock and Franklin Templeton's tokenized money market funds illustrate how blockchain is enhancing traditional financial services. ## Avoiding DeFi Principles While benefiting from blockchain's programmability and transparency, institutions are steering clear of core DeFi principles like open access and trustless execution. ## The Future of Blockchain Blockchain technology holds significant potential beyond traditional finance. While institutional adoption is crucial, it does not define the industry's full potential. ## Sources covering this story - https://cryptopotato.com/a16z-reveals-what-tradfi-really-wants-from-blockchain/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._