Corporate Finance in the Age of Fintech

This chapter delves into the transformative potential of blockchain technology in the financial sector, particularly through the lens of fintech. It begins by defining financial instruments as promises, emphasizing the role of trust and the legal system in maintaining the market for promises. The text then explores how blockchain technology, with its decentralized verification mechanism, could revolutionize financial markets by providing an alternative system for enforcing promises. The chapter also discusses the challenges that fintech must overcome, including regulation, environmental sustainability, and associations with illegal activities. It highlights the potential of non-fungible tokens (NFTs) as digital property rights and their role in the future of finance. The text concludes by envisioning a future where fintech could partially or fully replace traditional finance, offering a more transparent, efficient, and regulated financial system.