Demystifying Digital Finance
A Conversation with Matthew Fisher ’16 about building the infrastructure behind a new generation of global financial systems
Next Generation Innovation Series
BY JESSICA HALSTEAD
As the CEO of financial infrastructure company Katana, Matthew Fisher ’16 is no stranger to having to explain his complicated and somewhat mystifying work to others. We caught up with Matthew to ask him about Katana, what drew him to this work, and what we can expect in the future of cryptocurrency.
A finance major at Penn State, Matthew entered the industry just as blockchain technology was beginning to expand beyond early adopters, and quickly gravitated toward a field that blends markets, technology, and global access.
Now leading a company building blockchain-based systems for decentralized finance, his work often takes him around the world—from Seoul to Hong Kong to Buenos Aires—reflecting the truly global nature of this emerging industry. We caught up with Matthew to ask him about Katana, what drew him to this work, and what we can expect in the future of digital finance.
Q: For someone with zero technical background, how would you explain blockchain?
MF: One analogy I like is to think of it as a Google spreadsheet that tracks every financial transaction you make. But instead of Google owning it, there are thousands of computers around the world that each hold a copy simultaneously. So it’s not controlled by a single bank or institution. Many independent computers verify the data which is published and is immutable, preventing manipulation of the underlying data.
When a transaction is executed on blockchain rails, the transaction gets bundled with others to become a block of transactions. That block is verified by the network and gets permanently added to a chain of history. Once it’s there, it can’t be changed, which makes it transparent and trustworthy.
Q: What problem is blockchain trying to solve that traditional finance doesn’t?
MF: At its core, it’s trying to solve the trust problem. Blockchain technology was originally created right after the financial crisis in 2008, when a lot of people lost trust in banks.
But beyond that, it addresses issues of cost, speed, and accessibility. When I was growing up, my babysitter was from Venezuela, and she would always take us with her to Western Union to mail money back to her mom. Western Union charged pretty high fees for that. Now with blockchain, she’d be able to just send money instantly, for pennies.
There are people all over the world that have varying degrees of access to either their own brokers or financial tools or bank accounts, and providing digital assets is one way to give them more access.
And when it comes to speed, traditional systems could take days to settle transactions. With blockchain, that can happen instantly.
Q: You mentioned trust. Do people actually trust a system run by code more than traditional institutions?
MF: I think it’s a mix. There’s definitely been a decline in institutional trust, not just in the financial world, but in media spaces too, with disinformation and the like. It can be hard to know who to believe at times.
But at the same time, with blockchain, you don’t have to put your trust in a person or an institution because you can trust the system itself. It’s more practical, too. It’s cheaper, faster, and operates 24/7. I think that’s part of the reason it’s becoming more and more popular.
Building New Financial Systems
Q: How would you describe what Katana does?
MF: Katana is a financial infrastructure platform built on the blockchain. We build tools that let people trade, earn yield, or interact with financial markets. It’s like financial plumbing – it’s infrastructure that people may end up using without even realizing it.
Q: What’s one common misconception about blockchain or cryptocurrency?
MF: A big one is that cryptocurrency is only used for illicit activity. But in reality, it’s the most transparent financial system, because everything is publicly visible and permanently recorded. Another is that crypto is only used for speculation or gambling. While that exists, that’s definitely not the sole purpose of crypto.
Q: Why are traditional financial institutions starting to pay attention now to this space?
MF: It comes down to disruption. If they don’t adapt, they’re going to lose a lot of their core business. To go back to the Western Union example, they rely a lot on transaction fees. But if someone comes in with blockchain and says, “Hey, I can do free transactions instantly,” that’s a threat.
That explains why institutions like Fidelity, BlackRock, and JP Morgan are all getting involved with cryptocurrency with investments, EFTs and tokenization.
Looking Ahead
Q: You travel a lot for work. Where are you seeing the most adoption globally?
MF: Honestly, more outside the U.S. It’s taken off in places like southeast Asia. In Argentina, where it’s hard to access U.S. dollars, people there are starting to use cryptocurrency for everyday payments, even at the grocery store. It’s very much a global market.
Q: What initially drew you to this space?
MF: I’ve always been interested in startups and finance, and crypto kind of sits at the intersection of both. I saw a good opportunity to be early in an emerging industry. And because crypto is so new, there’s a big opportunity to take ownership early. I’m the youngest person on my team, but in a space like this, everyone is learning at the same time.
Q: What advice would you give students interested in blockchain or digital finance?
MF: I’d tell them there is a lot you can learn on your own—there’s really no limit to the amount of resources you can learn from. In terms of soft skills, being good to people and understanding what their goals are and how to meet them are important. And one final thing I’d say is to think about what you’re interested in and see how you can make a job out of it. I was already using my free time to learn about crypto, and then I started getting paid for it.
Q: Do you think blockchain technology will truly reshape finance?
MF: I think it’s already doing that, because it’s forcing a lot of financial institutions to optimize their processes and move toward better outcomes for users. It’s not like a massive shift is going to happen overnight, because shifts in financial infrastructure can take decades. But it’s not a matter of if the blockchain will reshape finance, but when.