According to research findings from management consulting company Greenwich Associates, using blockchain on the financial market is on rising trend. One of the most convincing findings is that financial markets spend approximately $1.7 billion every year on blockchain as products are produced.
In the last few years, some banks and other financial companies have been exploring blockchain technology. The R3 consortium in particular has become the most popular program since 2014. Blockchain products have great potential to be commercialized, reports Bloomberg.
Through research done by Greenwich Associates, a market intelligence provider in the U.S., has reported that blockchain budgets had 67% growth last year. This company uses professional advisory services that interviewed over 200 market participants for the topic.
The report also shows that banks and other financial companies have doubled blockchain revenue in 2017, and 14% of participants said that they have already arranged a successful solution for a production blockchain.
Richard Johnson, vice president of Greenwich Associates, declares that blockchain investment and development are trying to reduce cost. This drive could lead revenue opportunities and decrease risk and capital cost.
“More than half of the executives we interviewed told us that implementing distributed ledger technology (DLT) was harder than they expected. Nevertheless, more than three-quarters of projects currently under development are expected to be live within two years.”
Even though the report shows that the primary task for banks with their development of distributed ledger technology is payment, the result is less than satisfactory. Banking institutions keep losing customers and transaction volumes. The traditional systems are competing with extensive, real time basic facilities, and those facilities could possibly decrease the transaction marginal cost to zero.
Esteves, Ricardo. Banks Are Spending $1.7 Billion Each Year on Blockchain. Retrieved June 13, 2018, from Newsbtc: https://www.newsbtc.com/2018/06/13/report-banks-are-spending-1-7-billion-each-year-on-blockchain/
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