Finance is no longer controlled by the institutions that issue money, but by the systems that facilitate its movement and exchange. These systems, often referred to as protocols, automatically handle the storage, transfer, and validation of value. Programmable infrastructure uses software to embed trust, compliance and control directly into these systems, forming a new foundation for how money flows and decisions are made.
Tokenisation, automation and decentralised technologies are changing who holds power in the financial system. Rather than depending on banks or clearinghouses to enforce trust, these systems follow rules built into the technology. Users interact directly with platforms that operate without needing approval from a central authority. This represents a more profound shift in the structure of finance, where infrastructure assumes the role of setting access rules, applying logic, and maintaining secure records.
Legacy systems are being outpaced by real-time finance
Emmanuel Daniel, founder of The Asian Banker, explained that older banking systems were built for a slower, less demanding environment. “In the old model of banking, we could tolerate downtime, batch processing, and heavy back office costs,” he said. These systems kept institutions in control, but lacked responsiveness to real-time events. “Today’s systems run continuously. They support micro-transactions and scale in real time through open-source architecture.”
The collapse of Silicon Valley Bank highlighted the vulnerability of these older systems. A single tweet triggered $10 billion in withdrawals within hours. “By Friday, the bank was insolvent,” said Daniel, highlighting the speed of digital capital flight. “That kind of failure does not occur in crypto,” he added. Blockchain-based systems are funded in real-time and clear transactions are automatically processed through their base infrastructure.
These events show how financial control is shifting from centralised institutions to systems that operate around the clock, follow fixed rules and provide complete transparency.
In modern finance, the structure of technology has undergone a significant shift. Traditional banks run their software on top of narrow infrastructure. In programmable systems, the infrastructure carries the rules and logic that govern the system. New services can be built without needing permission. Daniel noted how application programming interfaces (APIs), once tightly controlled, are now open to developers. “Even a seven-year-old can now build an application and decide what community to serve,” he said. Generative artificial intelligence also helps newcomers create financial tools without relying on large institutions.
Composable systems are redefining financial architecture
Today’s financial systems are being rebuilt using modular parts that connect and interact. Developers combine tokenised assets, digital identity and automated logic to create systems that meet specific needs. These setups are faster and more flexible. They also remove the need for manual reconciliation, clearinghouses and delayed settlement. Jonny Fry, former group head of digital assets and strategy at ClearBank, said, “When you look at tokenisation, it removes the need for settlement, clearing and reconciliation.”
Why instinct matters in programmable finance
Emmanuel Daniel noted that experience with older systems does not always translate to success in programmable finance. “If you don’t have the instinct, you’ll have no idea what’s going on,” he said. Fry described this instinct as the ability to understand how smart contracts, blockchain protocols and decentralised systems work together. Leaders now need to track fast-moving developments and turn them into strategy.
Fry also highlighted the rapid growth of the market. Global payments generate $2.3 trillion in annual revenue and are expected to reach $3.2 trillion by 2027. Nearly 45% of that comes from Asia. “Asia is going to be leading this,” Fry said. “What we’re seeing in China’s tech stacks is likely to influence what unfolds in Europe and the United States.”
China’s digital currency pilots, tokenised platforms and identity-linked systems are already influencing global thinking on infrastructure design and regulation.
Leading institutions are adapting to this shift. Instead of controlling entire systems, they provide secure infrastructure that others can build upon. “JPMorgan is using JPM Coin for real-time settlements. Circle is tokenising US Treasuries. These aren’t hypotheticals. They’re already happening,” Fry said..
Ownership and risk in open financial systems
As financial systems become more accessible, users gain more control but also take on more risk. Fry explained that when someone deposits money in a bank, they give up ownership. “When you deposit $100 in a bank, that money no longer belongs to you,” he said. “It’s theirs. You become a creditor.”
David Parsons, chief technology officer at NiftyOne, added that in programmable finance, the responsibility shifts to the user. “In tokenised finance, liability no longer rests with the bank. It now falls on the end user,” he said. “Users must safeguard their own tokenised assets and manage private liabilities themselves.”
This means managing passwords, protecting digital keys and understanding how each transaction is programmed. If credentials are lost or assets are stolen, recovery may be impossible. Errors in code or unclear system design can also create risks. Many legal systems still lack clear rules for digital ownership.
As users take more responsibility, the infrastructure must offer stronger safeguards, clearer legal frameworks and tools that protect value at every layer.
Compliance is becoming part of the infrastructure itself
Fry noted that tokenisation will grow because it supports regulation, rather than due to product sales. “Tokenisation won’t be driven by sales. It will be driven by compliance and regulation,” he said.
Traditional compliance depends on manual checks, disconnected records and high costs. Programmable systems build compliance into the process. Smart contracts can confirm rules, check identity and produce audit trails automatically.
This lowers risk, improves accuracy and reduces cost. Institutions that treat regulation as software code are building infrastructure that meets global standards and scales with confidence.
Infrastructure is now the core of financial value
Programmable infrastructure is no longer a support layer. It controls how money moves, how trust is enforced and how accountability is built in.
Institutions that evolve into infrastructure platforms will support custom services built by users and partners. Users who work directly with these systems will shape the next generation of financial tools. Systems that last will reflect modular design, built-in compliance and automated trust.
Programmable infrastructure is not an upgrade. It is the new foundation of finance.
The Future Banking Working Group (FBWG) invites you to our upcoming session on “Payments and The Future of Money” — a tactical workshop exploring how digital innovation is reshaping payments and currency.
In this interactive session, we’ll explore:
- The macro shift away from cash and the rise of digital payment instruments from CBDCs and stablecoins to tokenised deposits.
- How blockchain and distributed ledger technologies are powering next-gen payment systems.
- The growing size and impact of digitised assets
- Why digital currencies are critical from cost reduction to risk management and consumer choice?
- The institutional uptake of digital assets and the role of digital payments in reducing systemic risk.
- Regulatory challenges, the urgent need for re-education, and what tokenisation means for banks’ assets and liabilities.
- A look into the future: could your next bank account be fully digital?
- How to stay current through resources like Digital Bytes.
Agenda (SGT)
- 11:00 PM – 11:20 PM: Introduction of Digital Assets by Emmanuel Daniel, Founder of TAB Global and Urs Bolt, Chairman, The Banking Academy
- 11:20 PM – 11:50 PM: Presentation by Jonny Fry, Former Group Head, Digital Assets Strategy, ClearBank, alongside David Parsons, Chief Technology Officer, NiftyOne
- 11:50 PM – 12:00 AM: Q&A
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