Banks, financial markets quickly bringing on blockchain
- Commercial blockchain technology is picking up steam in the banking and financial industries, with 15% of banks and 14% of financial market institutions reporting that they plan to implement blockchain solutions in 2017, according to IBM.
- About 65% of banks say they expect to have blockchain solutions in production in the next three years.
- IBM also found financial markets institutions are focusing their blockchain efforts on four areas: clearing and settlement, wholesale payments, equity and debt issuance, and reference data.
One of the key appeals of blockchain is that transmissions and movements can be audited through log data. Beyond financial applications it also has potential for a wide range of uses in areas such as education and logistics. It is also the tech that supports Bitcoin.
The technology is growing in acceptance and many companies, like IBM, are working to get in on the ground floor. Banking trailblazers, in particular, view blockchains as a way to create new business models and access new markets.
Microsoft, too, is working to delve into blockchain. This week, the company announced a collaboration with Bank of America to bring the technology to the bank's trade finance transacting.