Blockchain to attract over $1bn in global investments in 2016

Financial service firms and technology providers will focus on bringing blockchain to capital markets by investing more than $1bn in the sector this year, new research shows.

Most of those firms believe blockchain will trigger a “meaningful change” across capital markets within five years, Greenwich Associates says in its new Blockchain Adoption in Capital Markets report.

While blockchain is a fairly new interest of many financial services and tech providers, the report suggest they plan to make substantial investments in development and adoption of this technology.

“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,” comments Richard Johnson, Vice President at Greenwich’s market structure and technology group, and author of the report.

Greenwich surveyed 134 market participants in March and April 2016, aiming to assess the current state of blockchain adoption across banks, brokers, asset managers, exchanges, and leading blockchain technology companies.

The results show that nearly a third (32 per cent) of asset managers have an annual budget of over $5m for blockchain initiatives, while 15 per cent have budgeted over $2m a year for that.

Most study participants believe blockchain has significant potential to reduce operational costs and shorten settlement times, the research has found.

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