Yes / Blockchain has enormous capabilities to transform traditional business models in countless ways. Banks in India are building collaborative blockchain ecosystems to create an innovative business model and disrupt the traditional one to create more competitive advantage. This study’s purpose was to examine the relationship between blockchain capabilities (BCC), competitive advantage (CA), and organizational performance (OP), as well as evaluate CA’s mediating role in the relationship between BCC and OP. In this context, a scientific research model, including a hypothesis, has been developed from extant literature. The proposed model was tested using statistical data collected from blockchain specialists, blockchain product marketing managers, experts in future and emergent technology, and banking, finance, and tech managers or executives who are involved in planning and deploying practical blockchain in the financial sector. Data were analyzed and tested using AMOS 22.0 and a process macro using a sample comprising 289 responses. Our empirical results indicated a significant positive relationship between BCC, CA, and OP, as well as a relationship between BCC and OP, partially mediated by CA. This paper took an original approach and contributes to the literature on this subject to understand CA’s mediating role in the relationship between BCC and OP in the Indian banking sector.