According to a new survey from Greenwich Associates, Financial and technology firms are expected to invest more than $US1 billion to bring Blockchain technology to capital markets in 2016.
In March and April 2016 Greenwich Associates assessed the current state of Blockchain adoption across banks, brokers, asset managers, exchanges and technology companies and interviewed 134 market participants working on Blockchain technology. The results of are presented in its new Greenwich Report, Blockchain Adoption in Capital Markets.
“The financial sector will continue to put its weight behind Blockchain this year,” Richard Johnson, vice president for Greenwich's Market Structure and Technology group, said in the report. “Blockchain is beginning to prove itself fit for purpose in capital markets.”
“A majority of the financial service firms and technology providers we interviewed are convinced blockchain will enable meaningful change across capital markets within five years,” said Richard Johnson, vice president in Greenwich Associates Market Structure and Technology group, and author of the report.
“The study results reveal that significant resources are being spent on the development and adoption of the technology. Banks, brokers, exchanges, and central counterparties (CCPs) are taking the lead, while many asset managers take a more wait-and-see approach.
Among firms stating their organizations have some blockchain initiatives underway, 32 percent have an annual budget in excess of $5 million per year, and a further 15 percent have budgets in excess of $2 million. Projected across the entire financial services industry, that level of spending will likely top $1 billion in 2016.”
In the survey, the institutions do not believe unanswered questions about regulatory treatment are holding back innovation.
“Additionally, study participants say a move to DLT in capital markets could add unquantifiable benefits, such as providing a catalyst for industry transformation, creating new value chains and new markets, and improving regulatory compliance, transparency, and information sharing,” said Johnson.