Blockchain technology can make bank operations more efficient, speakers said at an industry event in Seoul.

Shin Joong-hyun, head of future growth at SBI Savings Bank, said at the "Bridging Finance Onchain" event at the Four Seasons Hotel in Seoul's Jongno district on October 1 that banking has clearly operated on systems built over centuries. New technology, however, can make those operations more efficient.

He outlined ways blockchain could reduce inefficiencies. Applying the technology to repurchase agreements, or repos, and tokenized assets could reduce the liquidity required and make atomic settlement possible. That could generate additional returns from idle funds and allow institutions to offer customers better terms.

Shin also stressed that blockchain should first be applied to areas of the existing financial system where change is most urgent. Not every legacy process is problematic, he said, adding that firms need to understand existing systems and apply blockchain in ways that fit.

Takuya Sugiyama, deputy head of digital space at SBI Holdings, echoed that view. The goal is not simply to tokenize existing assets, but to build market infrastructure for institutions using blockchain. The ultimate aim, he added, is to create a programmable financial network in which capital moves as smoothly as information.

The digital-asset industry also said interoperability between traditional finance and digital-asset infrastructure is needed to commercialize blockchain in finance.

David Katz, Circle's head of strategy and policy for Asia-Pacific, said the technology is already fairly mature, while regulation and infrastructure are being put in place quickly. What matters now is integrating those elements to achieve true interoperability and institutional-grade infrastructure. Many financial institutions, he added, want ready-made platforms from trusted service providers rather than building systems themselves.

Speakers also said the speed gap between on-chain assets and existing payment infrastructure needs to be resolved. Kim Tak-jong, co-founder and chief strategy officer at BDACS, said assets such as bonds and securities move at on-chain speed, but settlement funds still pass through traditional banking networks. As a result, final settlement often takes place a day or two later.

Kim added that technology is advancing faster than institutions and rules. For institutions to participate in on-chain finance, the legal framework for digital assets needs to be developed to the same standard as traditional finance.

In response, Shin said the expansion of on-chain finance will require institutional participation. Because the market is still not sufficiently developed, the industry, including competitors, needs to work together to build the ecosystem.