Large financial institutions like JPMorgan Chase & Co., HSBC Holdings Plc, and more are implementing blockchain-based systems, signaling a significant shift towards 2024.

While cryptocurrency companies are still recovering from their setbacks, a number of large financial institutions, such as JPMorgan Chase & Co., HSBC Holdings Plc, and Franklin Templeton, are initiating new blockchain-based systems, signaling a significant shift towards 2024.

A blockchain technology startup supported by Banco Santander, UBS Group AG, and Goldman Sachs Group Inc. handled its first payments this week via a network that has been in development for a number of years. The asset manager of Deutsche Bank AG, DWS Group, announced on Wednesday that it has formed a partnership with companies, including market maker Flow Traders, to establish a stablecoin issuing company.

The rush of year-end releases highlights how Wall Street's persistent mistrust of digital banking is being dispelled. Digital finance uses so-called distributed ledger technologies to facilitate faster, safer, and less expensive transactions. However, it remains to be seen how soon these applications can grow on a large scale. This year, the $1.5 trillion asset management firm made its mutual fund debut on the Polygon blockchain, following its debut on the Stellar network. The Franklin OnChain U.S. Government Money Fund's net assets were $329 million as of the end of November. Other executives who were questioned said that the pressure extends well beyond innovative software. They liken it to resetting the entire financial system, which they claim hasn't had a significant update since the 1970s.