In 2021, the fintech market was already booming, valued at over $110 billion and projected to triple by 2028. Those projections turned out to be conservative because in just five years, global fintech investments have surpassed $300 billion, driven by a mix of factors like artificial intelligence, blockchain adoption, and embedded finance.

Over these years, fintech has evolved from a “disruptive” niche into a foundational layer of the global financial system. And at the centre of that evolution lies one technology that continues to redefine trust, speed, and data transparency — blockchain.

Five years after the institutional crypto boom of 2020, the narrative has shifted from “crypto hype” to real-world digital asset integration. Major banks now issue tokenised bonds, central banks run pilot programs with digital currencies, and digital wallets have become as common as traditional banking apps. Still, the world remains divided in how it approaches financial innovation.

Let’s explore how the fintech and crypto landscapes have evolved and how competition between the West and the East is shaping the future of global finance.

Western Fintech: Is London Still the King of the Industry?

London has historically been Europe’s financial heart, and in 2026, it continues to hold its crown, but the competition has become fiercer. With more than 3,500 fintech companies and venture capital still flowing into the city at record levels, London remains the top European destination for startups in payments and blockchain infrastructure.

Two key factors still define its success:

1. Talent concentration 

London remains home to one of the highest densities of software engineers and financial technologists in Europe. Despite post-Brexit challenges, an international talent influx continues, thanks to hybrid work models and the city’s strong fintech ecosystem.

2. Capital and connections

The average early-stage fintech funding in London now exceeds $900,000, far above the global average of roughly $600,000. Global investors see London as the springboard to both EU and global markets.

The UK has also strengthened its technological leadership through policy experimentation. Since 2023, the government’s Digital Securities Sandbox has allowed tokenised assets to be tested under live market conditions. This program paved the way for blockchain-based settlement systems in foreign exchange and derivatives trading.

In 2025, the UK Treasury introduced another technological update and formalised a regulatory framework for stablecoins and tokenised financial instruments, providing the first legal clarity for institutional crypto usage. That move positioned the country ahead of the European Union in terms of practical crypto regulation, although the EU caught up fast.

At the same time, in mainland Europe, the EU’s Markets in Crypto-Assets Regulation (MiCA) has been fully implemented since 2024, creating a unified legal baseline for crypto service providers across 27 member states. It has high compliance demands, but at least fintechs can enjoy regulatory certainty.

As a result, Paris, Berlin, and Amsterdam are emerging as new hubs, each nurturing specialised strengths: France in green finance, Germany in infrastructure, and the Netherlands in digital payments. Still, London remains the beating heart of Western fintech, but it can no longer take its dominance for granted.

FinTech Moving to the East

If the West built the foundation for modern FinTech, the East is building its future. The Middle East and Asia have transitioned from “emerging markets” to innovation powerhouses.

Saudi Arabia, the United Arab Emirates, and Bahrain are leading a regional transformation. By 2026, Saudi Arabia’s fintech market will have exceeded $4 billion in total funding, growing at an annual rate of more than 25%. The government’s “Vision 2030” strategy continues to prioritise cashless payments and digital-first banking, transforming Riyadh into a centre for financial technology innovation.

The UAE, home to hubs like Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), has gone even further. It enacted clear virtual asset laws early on, enabling exchanges, blockchain startups, and digital asset funds to operate under well-defined rules. As a result, Dubai is now recognised globally as one of the top three crypto-financial centres, rivalling London and Singapore.

Fintech adoption has been equally strong in Bahrain, Qatar, and Oman, especially in digital payment infrastructure and regtech (compliance automation). The region’s common advantage lies in its top-down support: governments are actively partnering with private firms to roll out digital ID systems and blockchain-based payments.

Asia: Regtech and Crypto Maturity

Asia’s fintech has also kept pace. Countries like South Korea, Singapore, Japan, and Hong Kong have matured into highly regulated yet innovation-friendly ecosystems.

South Korea, for instance, has achieved what it promised back in 2022: a balanced crypto framework that recognises digital assets as financial instruments while enforcing strict compliance on exchanges and token issuers. The result is that institutional capital is finally flowing back to the country, and Seoul is competing directly with Taipei and Singapore for crypto leadership.

Meanwhile, Singapore continues to lead the world in Web3 corporate infrastructure and regtech. More than 70% of Singapore’s banks now use blockchain for compliance and cross-border payments. The government’s Project Guardian (in collaboration with MAS and J.P. Morgan) has evolved into a production-grade network supporting tokenised bonds and real-world assets.

Even China, the one-time adversary of open crypto markets, has shifted its stance. While public cryptocurrencies remain banned, the Digital Yuan (e-CNY) rollout has expanded globally, with the possibility of cross-border use with trading partners in ASEAN and Africa. As a result, Beijing is betting on state-backed digital currencies as the future of global payments.

Conclusion: West or East Fintech

The divide between Western and Eastern fintech strategies is now softening. Instead of competition, a new form of convergence is emerging, where innovation from one side complements the regulation and capital of the other.

The West focuses on financial transparency, governance, and innovation within traditional frameworks. London, New York, and Frankfurt are building the legal and infrastructural backbone.

The East bets more on speed, infrastructure transformation, and government-backed digitalisation — Saudi Arabia’s fintech push, Singapore’s blockchain projects, and China’s digital currency initiative are prime examples.

In the end, together, they make the crypto ecosystem a perfect place for growth. And as blockchain increases its role, the global fintech map will continue to redraw itself.