The next phase of institutional cryptocurrency adoption is unfolding as established fintech companies begin to create their own blockchains.
Financial services application Robinhood has recently revealed plans to establish its own layer-2 blockchain to facilitate tokenized stocks and real-world assets, while Stripe followed with intentions for Tempo, a payments-centric chain built in collaboration with Paradigm.
“This marks the beginning of many more to follow,” Annabelle Huang, co-founder of Altius Labs, shared with Cointelegraph during an interview. “Fintech firms in Asia, Latin America, and other emerging markets, which have been exploring this for years, are also gearing up for significant moves.”
Huang has witnessed the progressive relationship between crypto and Wall Street. After initiating her career in New York trading foreign exchange and rates, she joined Amber Group in Hong Kong, assisting in its growth into one of Asia’s leading crypto liquidity providers during the decentralized finance (DeFi) surge.
The latest wave of fintech-led blockchains confronts the same performance challenges that have plagued crypto since its early days. Wall Street firms execute trades in microseconds, while blockchains typically process transactions in seconds, or at best, milliseconds. Huang termed this the industry’s “execution bottleneck” and emphasized that it must be resolved before fintech-developed chains can support institutional capital effectively.
Execution bottleneck in crypto’s path to institutional adoption
Since leaving Amber Group, Huang has focused on addressing the execution bottleneck. Through Altius Labs, she is developing a modular execution layer intended to integrate directly with existing blockchains, enhancing throughput without requiring projects to overhaul their entire systems.
“Our objective is to enhance performance for any blockchain in a plug-and-play manner,” Huang stated. “This allows a chain to upgrade its block execution times and throughput without needing to redesign its complete architecture.”
She described this method as introducing greater modularity into the execution layer of the blockchain stack, differing from the conventional approach of launching sidechains or new layer 2s. By concentrating on the execution engine itself, Huang contends that Web3 can narrow the performance gap with Web2 while maintaining the decentralized nature of blockchains.
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On June 27, 2025, Wall Street underscored the substantial performance gap between contemporary blockchains and traditional financial infrastructure. Nasdaq’s closing auction for the annual Russell index reconstitution — an event when index funds adjust their holdings — achieved 2.5 billion shares in merely 0.871 seconds. The exchange’s INET system claims the capability to manage over 1 million order messages per second with sub-40-microsecond latency.
In contrast, blockchains remain significantly slower. Ethereum handles approximately 15 transactions per second with block times around 12 seconds. Solana — one of the fastest major networks — boasts a roughly 400-millisecond block time and manages thousands of transactions per second in practice. Even at peak performance, these metrics fall short of the standards institutions expect before committing significant trading activities on-chain.
Blockchains continue to enhance their scaling capabilities, with Ethereum L2s relieving traffic through rollups. Solana’s next-gen validator client, Firedancer, aims to bridge the gap even more.
Huang remarked that the industry shouldn’t anticipate an influx of more “Ethereum killers” or general-purpose blockchains, noting that users prefer to centralize around a few dominant platforms rather than disperse across numerous new chains.
“However, within Ethereum, scalability concerns persisted, prompting the development of new block spaces through sidechains. The introduction of L2s has further fragmented the market and complicates UI/UX,” she explained.
Institutional adoption in ETFs and treasuries
Although this forthcoming wave of institutional adoption necessitates enhancements to current blockchain networks, Wall Street hasn’t paused for these technical upgrades before diving into the digital asset frenzy. Many large investors have gained exposure indirectly via exchange-traded funds (ETFs) or through corporate treasuries. Bitcoin (BTC) funds have emerged as straightforward entry points, while companies like Strategy (formerly MicroStrategy) have effectively positioned themselves as leveraged proxies for the asset.
This strategy hasn’t succeeded for everyone. Throughout 2025, struggling firms have adopted the “Bitcoin treasury” narrative in a last-ditch effort to entice investors. Some saw their stock values briefly spike, only to fall back shortly thereafter. The precarious finances of certain firms have raised concerns about what may occur if they stumble in unfavorable market conditions.
Huang indicated that these shifts can be risky, particularly for retail investors, as not all corporate Bitcoin strategies are constructed similarly. She likened the price surges to token launches — an initial excitement followed by a return to “fair value.” Nonetheless, she contended that the demand for proxies like ETFs and treasury strategies will persist.
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“Before MicroStrategy, there was Grayscale. Many believed that once a Bitcoin ETF gained approval, the Grayscale premium would vanish, taking the MicroStrategy approach with it. However, a closer examination reveals that investors still favor MicroStrategy over an ETF for several reasons,” Huang said.
“Primarily, because Michael Saylor has been accumulating Bitcoin for a longer duration, their average cost basis is lower. Additionally, they have undertaken multiple fundraising rounds through convertible bonds, which introduces leverage. This makes MicroStrategy effectively a slightly leveraged play on Bitcoin at a lower average cost basis,” she noted.
Huang also mentioned that while ETF options are available for Bitcoin and Ether (ETH), those seeking altcoin exposure often opt for debt strategies instead.
Fintech chains are shaping the next stage of institutional adoption
Fintech companies such as Robinhood and Stripe are paving the way for the next phase of institutional blockchain commitment. Instead of merely adding cryptocurrency tickers to their trading platforms, they are investing in their own blockchains — a significant step towards integrating digital assets into their foundational infrastructure.
The surrounding infrastructure is also changing. Over-the-counter desks, which were previously discreet access points for hedge funds to acquire Bitcoin off-exchange, are now positioning themselves as regulated liquidity providers.
Practically, this entails offering the compliance, settlement, and reporting standards that institutional clients expect, bringing crypto closer to Wall Street norms.
“What we are currently observing — and I anticipate this trend will continue — is a movement towards institutions adopting stablecoins or even developing their own blockchains for specific applications,” Huang stated.
These conversations, which she started four years ago while at Amber Group, are now becoming actionable. “They’re finally poised to take action.”
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