Moving From Traditional Finance to Blockchain
Traditional finance industry players can step into blockchain and, in many cases, they already have an advantage. Banking, accounting, audit, compliance and investment experience can provide a foundation for blockchain and digital asset roles. However, it is not automatic; the transition must be made between the existing skills and a particular role, and it will not be successful unless it is matched.
Which Finance Skills Transfer to Blockchain?
What is relevant is risk management experience, which has to be applied to a new asset class in digital asset risk functions, and is characterized by counterparty exposures and volatility. Compliance experience is equally applicable, as AML/KYC requirements, transaction monitoring and regulatory reporting are all applicable to digital asset firms in a similar manner. Skills acquired in audits also apply to blockchain audit and controls, such as reserve verifications and financial reporting.
Financial analysis and investment experience is helpful for the research and service roles in institutions of digital assets. Digital asset accounting and reporting functions are subject to special classification and valuation issues where accounting knowledge comes into play. Settlement, reconciliation or process operations experience is carried forward to digital asset operations. Experience in governance will be helpful as digital asset companies begin the process of formalizing board governance and internal policy. Each of these skills alone is not enough to secure a position in blockchain. They serve as the basic framework, which will need to be supplemented by knowledge of digital assets.
Understand the Blockchain and Digital Asset Landscape
Finance professionals looking to enter the blockchain space will need to have a foundational understanding of blockchain networks, digital assets and tokens, and stablecoins. It's also a good idea to understand the concept of wallets, tokenization, and smart contracts. The other most important pieces of knowledge that most non-technical positions require include digital asset custody, market structure, and digital asset-specific regulatory issues. No technical or programming study is needed for any of this.
Choose the Right Career Path
There are several careers that are good for finance majors. Digital asset compliance and AML/KYC positions are closely related to their traditional counterparts, as they are similar to the roles in the traditional financial sector. The common frameworks of risk management roles are being adapted to new exposures and volatility associated with custody. Audit and controls roles involve learning methods of verification in blockchain. There are skill sets in traditional finance which are applicable to digital asset finance, operations, research and analysis, and institutional digital asset roles. For those who have experience in stakeholder management and commercial functions, blockchain roles in product and business are appropriate.
Blockchain developers or smart contract engineers are technical roles, which is another category. Their duties typically involve programming and software development abilities, which are not necessarily acquired in a finance career.
Build the Skills You Are Missing
Structured education in digital assets, blockchain principles, and regulatory/compliance knowledge in digital assets are potential approaches to closing knowledge gaps. For non-technical jobs, it helps to have some knowledge of the risks involved in digital assets and the fundamentals of the blockchain. Applied understanding can be shown through practical case studies, independent research and/or project work as relevant, including work from a current finance role. The "depth of learning" will depend entirely on the role, not attempting to teach students everything in the space.
A Practical Transition Roadmap
Figure out what part you want to play in the blockchain or digital asset space. Apply the finance knowledge and abilities you already have to that job. Know where gaps lie in your knowledge and skills compared to what is required for the role. Understand the concepts of blockchain and digital assets. Develop concrete evidence through projects, case studies, research or work experience. Revise your resume and professional profile, emphasizing transferable skills. Look for jobs that still make use of skills that you already have in finance.
Certification Example
This learning process can be structured with professional education for compliance-oriented jobs. One of the structured options for finance professionals seeking to develop their knowledge in digital asset compliance is the Certified Digital Asset Compliance Expert (CDACE)™ by 101 Blockchains, which is a CPD-accredited Digital Assets Compliance Certification. It is not a qualification for a blockchain developer nor a guarantee for getting a job, interview, promotion or salary increase. It's not a substitute for professional experience; it's a complement.
FAQs
Can financial workers become members of the blockchain? Yes. There are a number of transferable finance skills that are applicable to compliance, risk, audit and operational positions within digital asset companies.
What skills in finance would be relevant in blockchain jobs? Risk management, compliance, audit, financial analysis, accounting, and governance are all relevant to various digital asset jobs.
Is coding a requirement for someone to transition from finance to blockchain? For technical positions, like a blockchain developer or smart contract engineer, coding is required. Coding is not required in most compliance, risk and finance-related functions.
What are the most important blockchain skills for finance? Understanding the basics of blockchain, digital asset regulation, custody, tokenization, and simple on-chain terms, applicable to the desired position.
Will digital asset certification be the catalyst for finance professionals to enter blockchain? It can be used to support the development of structured, role-specific knowledge, especially for compliance-related paths, but is best used in conjunction with prior finance experience.
Conclusion
It is not necessary for finance professionals to begin their careers over to join blockchain. Already established tools and processes around risk, compliance, audit, and finance will provide a solid foundation, while a specific understanding of the digital asset space will fill the gaps. Choosing the right transition strategy will depend on the desired role, and certification is best used in conjunction with professional experience.