The role of fintech startups and big banks in shaping trust expectations from blockchain use in mainstream financial markets

Abstract

Through two qualitative case studies we explore the role of a fintech and a big bank in shaping trust expectations of blockchain use in mainstream financial markets. Drawing on Zucker's theory of trust we explore adaptations to the original blockchain made by these actors, and show how such changes may impact trust expectations from blockchain use. Our analysis identifies a blockchain innovation trajectory involving the co-evolution between technological changes and trust expectations as it moves from supporting cryptocurrency exchanges to mainstream business settings. Furthermore, we show that fintech startups and established big banks align their strategies with the widespread generalization and acceptance of blockchain as a sector-wide information infrastructure and position themselves in co-dependent relationships within the emerging blockchain marketplace. Industry practitioners may gain insights on how to best navigate this innovation space.