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Thursday, October 21, 2021
Home News Deutsche Bank - Blockchain is Coming Sooner Than You Think

Deutsche Bank – Blockchain is Coming Sooner Than You Think

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. 

Richard Kasteleinhttps://www.the-blockchain.com
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, 'The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, the Netherlands where he has set down his anchor to raise a family and write. Founder and publisher of industry publication Blockchain News (EST 2015) and director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He has written over 2500 articles on Blockchain technology and startups at Blockchain News and has also published in Harvard Business Review, Venturebeat, Wired, The Guardian and a number of other publications. Kastelein has an Honorary Ph.D. and is Chair Professor of Blockchain at China's first blockchain University in Nanchang at the Jiangxi Ahead Institute software and Technology. He has over a half a decade experience judging and rewarding some 1000+ innovation projects as an EU expert for the European Commission's SME Instrument programme as a startup assessor and as a startup judge for the UK government's Innovate UK division. Kastelein has spoken (keynotes & panels) on Blockchain technology at over 50 events in 30+ cities.
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