Deutsche Bank – Blockchain is Coming Sooner Than You Think

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Blockchain technology will be widely used in capital markets within six years, completely changing the settlement model for securities, according to a recent Deutsche report.

“Blockchain may completely change the settlement model for securities processing, creating a utility around securities processing and cash management,” says Deutsche Bank’s Rhydderch. “The entire back end would become a far more efficient, far less costly, more accurate and less risk-prone function. This has an obvious knock-on effect on the cost of service provision. In the administration space, Blockchain may not be quite the disruptor. It’s more in the functional utility elements within the securities processing settlement chain. In that context, it may be totally revolutionary.”

“I think the banking industry is quite slow to accept change,” says the head of investment at a Northern European sovereign institution, who expects active Blockchain in the current web of legacy infrastructure. They’re trying to determine how it can be deployed in a way that works, given ongoing data protection and security concerns. They’re also trying to figure out how to transition from the older infrastructure to this entirely new system.”

Of some 200 financial market participants queried by the report, three quarters see Blockchain technology being widely used within the next three to six years, while half report that this could help the industry cope with the risk of system failure and market disruption.

A whopping 87 per cent think that Blockchain could completely change the settlement model for securities therefore securities clearing and settlement will become more efficient, driving down costs. And almost two thirds expect the introduction of Blockchain technology to produce savings of between 11-25 per cent.

See report here. 

About Richard Kastelein

Founder, Publisher and Editor in Chief of industry leading online publication, Blockchain News and co-founder and director at Blockchain Partners in London/Amsterdam/NYC. Kastelein is also an advisor with a number Blockchain startups doing ICOs including Humaniq.co where hs is interim CMO, DECENT.ch, Inchain, Chronobank, eGaas and others. He is regarded as one of the top journalists by the Blockchain and fintech communities – as is evident by his entry in the Top 150 Fintech journalists online and in the top 10 of the Blockchain Top 100 List.

As a prominent keynote presenter, he has spoken on Blockchain at events in Gdansk, Amsterdam, Minsk, Dubai, Antwerp, Eindhoven, Bucharest, Nairobi, Tel Aviv, Manchester, Brussels, Barcelona etc, where he helped spread the cause for Blockchain technology and cryptocurrency and, consequently, has built a notable network in the scene.

He’s also a director of a Dutch foundation called The Hackitarians and has run innovation events in London, San Francisco, Berlin, Amsterdam and other cities around the world on topics such Blockchain, Health, Energy, Internet of Things, AI etc.

In 2013, the European Commission appointed him as an expert for overseeing financing for emerging startups as a part of the European Commission’s 90 billion euro Horizon 2020 project, created in Brussels to promote innovation as a driving force of job creation and business ventures across Europe. He has also worked as an external expert for Innovate UK since 2012, judging startups for the UK government.

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