How Cardano enables compliant on-chain finance and transparent entity verification

Can we enhance the definition of money by adding context about the balance sheet or the story of the company behind a transaction? Frederik Gregaard, CEO of the Cardano Foundation, says yes.

Recently, we had the opportunity to interview Frederik Gregaard to explore how blockchain technology can enhance transparency, democratise access to data, and verify the identities of people and businesses in a compliant way. One key takeaway: Cardano can enable on-chain finance with regulatory-compliant identity verification by integrating Legal Entity Identifiers (LEIs), ensuring that institutions participating in tokenized markets are verified and accountable.

Legal Entity Identifiers (LEIs) are unique 20-character codes that identify legal entities participating in financial transactions globally. They are essential for regulatory compliance, reporting, and transparency in traditional finance.

Frederik’s journey began long before blockchain or Bitcoin existed, with a focus on democratising access to capital markets. Early in his career, he discovered that there are biases and problems related to open access to markets in terms of consumer protection and education. This led him to build more open/inclusive systems and financial market infrastructure for banks, fund managers, asset managers, and central banks.

His exposure to blockchain and Bitcoin sparked a new mission: enabling access to financial services for the unbanked, particularly when crypto companies struggled to establish banking connections and payment rails to interact with traditional finance.

One solution lies in sharing data and verifying identity through an open, scalable, compliant, and transparent blockchain like Cardano. Cardano, a layer-one blockchain and the world’s largest Decentralized Autonomous Organisation (DAO), enables digital IDs for its 7–8 million participants. Users can engage in governance via liquid democracy, voting for initiatives and representatives in a public, permissionless system.

For a B2B financial services audience, Frederik emphasised the power of integrating LEIs on-chain: institutions can be verified, transactions can be audited for compliance, and fraud or misidentification is reduced.

He highlighted a common inefficiency in traditional finance: moving assets between institutions involves three systems - SWIFT (a messaging protocol, not an asset mover), asset-specific systems, and back-office systems for reconciliation and compliance. These fragmented systems increase costs, slow settlements, and risk inconsistencies across jurisdictions.

Blockchain solves this by enforcing a single standard, merging systems into a unified infrastructure that enhances transparency, speed, and efficiency. On Cardano, banks can trust that data is immutable, synchronised, and verifiable across all participants.

We also discussed the implications of AI, particularly agentic AI, in automating processes, boosting productivity, and in the context of how the labour market reacts. Frederik emphasised that constant education, open access to training, adaptability, and embracing new ideas are essential for individuals and organisations to thrive in a rapidly evolving financial landscape.

For those interested in exploring real-world applications, opportunities, and challenges of blockchain for enterprise, the 2025 Cardano Summit in Berlin on November 12–13 offers a unique perspective.

The lineup includes Tim Draper and a number of global industry leaders sharing insights on the evolving blockchain and Web3 landscape.

The Paypers audience can also access an exclusive 20% discount using code Paypers20 at summit.cardano.org.

Enjoy the interview, and we welcome your feedback!

 

About the author

As CEO of the Cardano Foundation, Frederik Gregaard brings over two decades of leadership experience, including his tenure at PwC, where he spearheaded transformative initiatives in digital innovation. Under his guidance, the Foundation has become a catalyst for blockchain adoption, driving impactful solutions in decentralised governance and sustainability. Frederik’s leadership emphasises transparency, regulatory alignment, and fostering global collaboration to build a more inclusive and decentralised future.

 

 

About Cardano Foundation

Established in 2016, Cardano Foundation is an independent, Swiss-based non-profit organisation dedicated to advancing the Cardano blockchain ecosystem. The Foundation standardises, protects, and promotes the Cardano protocol while fostering blockchain adoption through strategic partnerships with organisations like Petrobras, SERPRO, Switzerland for UNHCR, and the University of Zurich. With over 100 employees, the Foundation drives initiatives addressing real-world problems from climate action to digital transformation across multiple sectors.