Banks examining ways to use blockchain tech – report

New report suggests that the use of blockchains and distributed ledger technologies will increase.

The use of blockchain and distributed ledger technology (DLT) will increase in the future as more banks and exchanges begin to implement them, according to a report from GreySpark Partners.

The report, The Blockchain; Capital Markets Use Cases, suggested seven capital market uses for blockchain including payment and remittance and regulatory reporting.  The report has indicated that some DLT’s have proven stronger than existing lifecycle technology.

The findings come shortly after chief executives from CME, ICE and Eurex highlighted efficiencies of underlying blockchain technologies at a recent derivatives event in Chicago. 

Despite the findings, the report also suggests that banks and buyside firms may be hesitant to use the technology due to the cultural shifts that would be involved.  

“DLT and blockchain technology represent a very real, and potentially disruptive solution to a number of problem areas in financial services, both today and in the future. With the release of this report we have equipped our clients with the information required to have an informed conversation about this technology,” said GreySpark partner Bradley Wood

Camron Miraftab, GreySpark analyst consultant and co-author of the report added: “Blockchain and distributed ledger technology, while representing a promising alternative to existing financial markets infrastructure, presents two challenges that banks and other financial institutions must consider before deciding whether its use is applicable within their businesses.”