The Role of Blockchain Technology in Ensuring Transparency, Trust, and Auditing in Financial Markets: Prospects and Challenges

This study investigates the role of blockchain technology in enhancing transparency, trust, and auditing in financial markets, with a focus on the context of Azerbaijan. The research aims to address key challenges in adopting blockchain, particularly in relation to transparency, security, transaction optimization, trust, and regulatory compliance. Using a systematic approach, the study combines the analysis of statistical data and practical case studies to explore blockchain’s impact on various sectors of the financial industry, including security issuance, international payments, and fund management. The findings reveal that blockchain has the potential to revolutionise financial market operations by offering secure, transparent, and efficient systems for data management and transactions. However, the study also highlights significant barriers to implementation, such as regulatory uncertainty and infrastructure limitations. By examining the experiences of leading countries such as Switzerland, Singapore, and the European Union, the study identifies best practices for integrating blockchain into financial systems and provides actionable recommendations for countries like Azerbaijan. This research contributes to the literature by offering a conceptual framework for understanding blockchain’s role in financial market transformation and providing original insights into its application in both developed and emerging economies. The findings have significant global implications, as they can guide the successful integration of blockchain technologies across different financial markets. Moreover, the study offers practical recommendations for policymakers and financial institutions to address barriers and accelerate blockchain adoption, potentially creating multiplier effects in areas such as financial inclusion and market efficiency.