ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmail
Microsoft says legacy banks are hitting a breaking point as AI takes over the heavy lifting
Microsoft and Chainalysis executives warned that as AI agents begin managing transactions at scale, the financial industry must overhaul its legacy infrastructure to prioritize machine identity and trust.
By Helene Braun|Edited by Nikhilesh De
Apr 28, 2026, 4:10 p.m.
(Sean Gallup/Getty Images)
- Financial firms are being pushed toward AI-driven, machine-executed transactions at massive scale, straining legacy systems and forcing a redesign of core infrastructure, speakers from Microsoft and Chainalysis said. - Industry leaders said the key challenge is shifting from what AI systems can do to whether they can be trusted, audited and controlled in highly regulated environments. - Executives from Microsoft and Chainalysis expect traditional payment rails, private networks and public blockchains to coexist, with software linking them as more commerce moves onto public infrastructure.
BTCBTC$76,242.11◢1.11%
Artificial intelligence is pushing financial systems toward a model where machines execute transactions at scale, raising new challenges around control, oversight and infrastructure, said Microsoft and Chainalysis executives.
Bill Borden, corporate vice president of worldwide financial services at Microsoft, said Tuesday that legacy systems will face increasing pressure as transaction demands grow more complex. The tipping point comes when “latency, scale, complexity are starting to impact your ability to compete,” forcing firms to rethink how their systems are built, he said at an event hosted by Alchemy in New York City.
While automation has long been part of finance, Borden said the focus is now shifting from capability to trust. “It’s not about, can technology automate … executing a hedging strategy — that can be done. The question is: can you trust it? Can you audit and control?” he said.
Microsoft, which offers its own AI assistant in many of its products, is developing tools to manage that transition, including systems that assign identities and permissions to AI agents and track their actions. In regulated environments, Borden said firms must be able to show “what controlled it” and whether a system “followed the policy” when decisions are made without direct human input.
Jonathan Levin, co-founder and CEO of Chainalysis, said the crypto sector already offers a working model of automated finance. Blockchain networks process large volumes of transactions through smart contracts and software-driven wallets, creating what he described as an environment similar to agent-based systems. “We’ve been preparing for these moments way before other parts of the financial services industry,” Levin said.
That experience extends to risk management. Levin pointed to efforts to track illicit funds across “thousands of different wallets” as an example of the kind of monitoring needed in a system where transactions happen at scale without direct human input.
Looking ahead, both executives expect a mix of systems to coexist. Levin said “the majority of commerce in 10 years time will be settled on public infrastructure,” while Borden pointed to a more integrated approach linking public blockchains, private networks and existing rails.
“I do think traditional rails will continue to exist,” Borden said, with software acting as the layer that connects them.
World Cup fever: Chiliz expands to Solana and Base to supercharge fan token trading
By Jamie Crawley|Edited by Nikhilesh De
Chiliz rolled out its own layer-1 network in 2023 to host the trading of its tokens, but is transitioning to what it calls "omnichain distribution."
- Chiliz is expanding its roster of over 70 fan tokens to Solana and Base, the Ethereum layer-2 network developed by Coinbase. - Fan tokens are digital assets that represent membership of a community, such as a sports team's fan base. - Chiliz said it hopes that expansion to Solana and Base will...
Robinhood stock falls 8% after big earnings miss due to weak crypto trading revenue
Paul Tudor Jones calls bitcoin the 'best inflation hedge,' warns of overvalued stocks
CFTC sues Wisconsin in agency's legal campaign defending prediction markets authority
World Cup fever: Chiliz expands to Solana and Base to supercharge fan token trading
The age of Agentic Commerce has arrived. Consensus 2026 is where you can experience it IRL
Polymarket reportedly seeking CFTC approval to reopen main exchange to U.S. traders
'Crypto Godfather' says bitcoin has not reached its bottom and a new all-time high is off the table for 2026
Bitcoin loses $77,000, ether, solana slide as Hormuz standoff lifts oil to 3-week high
Industry leaders are pouring hundreds of millions into a rescue plan for Aave users after massive crypto hack
CFTC's AI will review U.S. crypto registration applications, chairman tells CoinDesk
Jack Dorsey's Block nears 9,000 bitcoin in treasury after Q1 addition
Bitmine's ether buys are catching up to Strategy's bitcoin accumulation pace
