Blockchain Adoption

A continued combination of progress and setbacks for Blockchain

This space has been picking up steam since the latter part of 2014 and peaking probably around 2015. The general trend that we have seen is an explosion of start ups attempting to produce them, with several large companies positioning themselves as market leaders.  So far there is not a clear cut value proposition from any of the market leaders, i.e. how does one monetise distributed ledger technology.  Having said that, there are multiple trials backed by industry heavy weights.  An IBM study suggests that 65% of banks will be in production by 2019, and another study found that 64% of asset managers envision using distributed ledgers within 5 years.
Here is excellent summary of 2016 YTD distributed ledger developments – ‘real world projects’.
Our favourite: CLS announced it will use Hyperledger to implement distributed ledger based solution for their settlement system.   The world’s FX settlement powerhouse has the backing of several of its members.   Given CLS is regulated entity and the time lines in their press release are quite aggressive, we do believe this is may be the first significant implementation of Distributed Ledger.
Julia Moiseeva, FinTest

Blockchain adoption increases with R3 completing a bond trading trial with multiple banks and the leader in FX settlement systems announces it will move to a Hyperledger based system.  Meanwhile,confusion reigns with conflicting statements from ISDA, the ECB and BoE.

The first collaborative near real-world tangible use cases and practical applications of distributed ledgers  in the financial industry are now being brought to the open. And more are expected soon. Here follows a number of interesting examples of actual projects, initiatives and trials. Main question is: will they be viable in the long run?

Sam Gormley