Compass Investments

– When I asked Frederick about one of Cardano’s main challenges – restoring faith in financial systems, he said without hesitation:

Blockchain governance is key to restoring trust in financial systems by embedding transparency and accountability right into the structure. He contrasted this sharply with traditional models, which he said operate as black boxes with centralized decision-making, often prioritizing institutional interests over user interests.

But governance is only part of the story. As Frederick explained, the real breakthrough lies in how blockchain will change the process of verifying financial information.

today’s financial systems make us wait 12 to 16 months for qualified audit opinions that only reflect past situations, not current realities, he said.

Blockchain enables near-instant audits of balance sheets and income statements through trusted intermediaries and third parties.

He emphasized that by combining this real-time verification with technologies such as Verified Credentials, we are moving from systems based on distrust and bureaucracy to trust mechanisms based on verified facts stored in an immutable data infrastructure.

A new standard of transparency, accountability and trust in financial reporting.

And this same principle of transparency, decentralization and representation is evident in Cardano’s governance model.

The Cardano model is designed to be representative. Every ADA owner can contribute to the management of the ecosystem, he explained. Checks and balances are also built into this new era of governance.

At the heart of this model is a tri-chamber system comprised of delegate representatives (DReps), stake pool operators (SPOs) and a constitutional committee, each with a unique role in balancing power, enforcing the Cardano Constitution and protecting the integrity of the mainnet.

This model creates a system that adapts to new challenges while remaining true to our principles of transparency, accountability and openness, Frederick said. To Frederick, it’s not an abstraction.

Cardano is a true public digital utility, he told me, “a fundamental infrastructure designed not only to serve markets, but also to serve society.

As I spoke with Frederic about the evolving global regulatory environment, it became clear that the conversation about stablecoins is no longer about compliance – it’s becoming a strategic lever in the race to dominate the digital economy.

We’re already seeing regulatory policy become a form of digital economic competition, Frederic told me. And the stakes are high

he pointed to a clear divergence: while the United States is moving toward a more cryptocurrency-friendly environment – particularly around 1:1 backed stablecoins – Europe, despite its leadership in shaping early policy, risks falling behind. Europe is at a crossroads in the global crypto race, he said. “To avoid getting lost in the intricacies of regulation, the continent needs clear, forward-thinking policies that will attract global crypto talent and investment.

What struck me about this speech was the shift in tone from compliance to competition. Frederick saw regulation not as a constraint, but as a geopolitical strategy. Like tax havens or fintech hubs, jurisdictions that offer clarity and allow for innovation will attract capital, liquidity and top-notch blockchain infrastructure.

So where does that leave platforms like Cardano in this high-stakes situation? According to Frederick, preparation means taking a proactive, multi-layered approach.