Blockchain builds the foundation of trust services in a trustless environment, and is considered to be the future technology that is most likely to cross the barriers to financial innovation. This article summarizes the enabling role of blockchain technology in financial innovation, including payment, credit reporting, exchanges and digital currency. Combined with the limitations of financial innovation and the technical characteristics of decentralization, de-trust, non-tampering, and security of blockchain, we discuss how to break through the bottleneck of financial innovation with the help of blockchain technology. Based on the analysis of the technical characteristics of the blockchain, it further discusses how the blockchain technology can be practically applied in the financial industry. Finally, it discusses the challenges that blockchain technology will face to the development of financial innovation, focuses on the three-stage maturity model of blockchain, and looks forward to its future development trend.