Composable Finance Integrating AI, Blockchain, and APIs for Modular Financial Products

Abstract

The convergence of artificial intelligence (AI), blockchain, and cloud-based APIs is transforming the foundations of financial infrastructure through composable finance, a paradigm that enables modular, interoperable, and programmable financial products. Traditional financial institutions remain limited by siloed architectures and rigid product delivery systems that restrict scalability and cross-platform innovation [1], [8]. Composable finance overcomes these barriers by introducing dynamic interoperability between centralized and decentralized systems, allowing financial components to be developed, reused, and extended through standardized API orchestration [3], [10].

This paper presents an integrated architecture that combines AI-driven decision intelligence [2], blockchain-based settlement and verification [9], and API-enabled semantic interoperability [6], [11]. The study explores how intelligent financial agents perform autonomous portfolio optimization, credit scoring, and liquidity forecasting by interacting with smart contracts across modular financial networks [12], [14]. Drawing on advancements in digital twin modeling and cloud computing [19], [21], the proposed approach demonstrates how distributed AI models can be synchronized with blockchain layers to ensure security, transparency, and adaptability in real time. A prototype simulation illustrates reduced settlement latency, higher interoperability efficiency, and improved compliance accuracy using privacy-preserving model scoring techniques [15]. The findings indicate that the integration of AI, blockchain, and APIs through composable architectures can significantly enhance transparency, scalability, and resilience, setting the foundation for the next generation of programmable, user-centric financial ecosystems.