Blockchain in financial services is beginning to emerge, with start-ups and established players beginning to test systems using the technology spurred by expectations of billions of dollars of savings and the elimination of inefficiencies. Exchanges and clearers such as the Australian Securities Exchange, Nasdaq, the DTCC and Euroclear are among the incumbents looking to leverage the technology, however, industry experts caution that mainstream adoption is still some way off, comparing it with the early days of the internet or cloud computing. The blockchain’s potential for improving efficiency has been recognised by major banks including Barclays, which recently announced a partnership with IBM on its own distributed ledger technology.
Blockchain in financial services is beginning to emerge, with start-ups and established players beginning to test systems using the technology spurred by expectations of billions of dollars of savings and the elimination of inefficiencies. Exchanges and clearers such as the Australian Securities Exchange, Nasdaq, the DTCC and Euroclear are among the incumbents looking to leverage the technology, however, industry experts caution that mainstream adoption is still some way off, comparing it with the early days of the internet or cloud computing. Ray Valdes, research vice president at IT consultant Gartner, suggests that hype surrounding blockchain has inflated expectations and disillusionment will follow soon.