Five ways banks are using blockchain

  1. Removal and liquidation this is not the most attractive banking sector, but a complex network that records loans and securities that cost investors billions of dollars in investment banks. Accenture estimated that the largest investment banks could save $ 10 billion in blockchain technology to improve the efficiency of clearing and settlement. Richard Lumb, head of the financial services consulting firm, said: “First, we see how it affects home cleaning, such as Deutsche Börse, the Australian Stock Exchange and the Depositary Trust & Clearing Corporation [DTCC] He. Adds: “Today is the running of a large number of messages and manual tuning, there is a great opportunity for the blockchain to seriously restructure this industry.”

 

One of the best examples of this restructuring, Australian Securities, which aims to transfer much of its reward and settlement after settlement to the chain block system. The project is implemented by Digital Asset Holdings, a company led by Blythe Masters, former director of JPMorgan Chase.

 

  1. Central bank payments around the world are investigating the possibility of transferring part of their payment systems to a technology block or even for launching a digital currency. This is partly a response to the challenge that independent cybercriminals like bitcoins can pose for their control of monetary policy. It also shows how the central bankers are aware of the possible advantages of technology for the payment system.

 

 

  1. Finance trade finance is still largely paper-based, such as the shipment of notes or letters of credit, sent by fax or post office in the world, and many bankers seem to require modernization. Many believe that blockchain is an obvious solution, especially since many parties need access to the same information.

 

  1. Identity

Confirmation of clients and contracting parties is vital to the bank. Without this, lenders would quickly lose the role of trusted custodians of civic money. Regulators are banks responsible for checking that buyers are not criminals or illegal actors, and they are fined if they are wrong. For years, banks have been trying to set up a common digital tool to capture customer identity and update them. They failed to find the right formula, defeated by the contradictory requirements and the problem of responsibility. Some believe Blockchain can offer a solution for cryptographic protection and the ability to share a constantly updated record with many components.

 

  1. Trade Unions

When a US UU collects money through a syndicated loan, the average bank lasts 19 days to settle the transaction. When the loan between banks changes or the borrower pays for the loan, much of the communication is still done by fax. Emmanuel Aidoo, Head of Block Chain at Credit Suisse, said, “This is an area that has not been much innovation.” Credit Suisse is one of the 19 financial institutions that formed a consortium, in collaboration with Synapse, to start syndicated loans in block systems.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s