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Five Ways Financial Institutions/Authorities Work With Blockchain Technology

With endless trials/projects/initiatives/region-specific consortiums/pilots, blockchain sometimes looks like one of those ‘fashion items’ in the financial services industry that institutions want to have to keep the title of 'innovative and modern.' Undoubtedly, some of those initiatives will end up perpetuating a large-scale adoption, but at the moment, a potpourri of activities just keeps piling up.

To somehow structure them, let's look at five types of relationships that financial institutions are establishing in the blockchain segment of financial technology solutions:

Type of relationships Examples of institutions Examples of activities Investments/</p>

VC fund</td>

  • Goldman Sachs
  • Santander
  • Visa
  • Citi
  • JP Morgan
  • BNP Paribas
  • BBVA
  • NYSE
</tr> Collaboration/</p>

Partnership</td>

  • Bank of America
  • HSBC
  • Deutsche Bank
  • Santander
  • Visa
  • BNY Mellon
  • BNP Paribas
  • JP Morgan
  • ASX
  • Barclays
  • Capital One
  • Nasdaq
  • MUFG
</tr> In-house project/</p>

Non-startup partnerships</td>

  • BNY Mellon
  • Goldman Sachs
  • Citi
  • UBS
  • BTMU
  • LHV Bank
  • Bank of England
  • RBC
  • Westpac
  • USAA
</tr> Consortiums
  • R3 CEV
  • Russian banks
  • Japanese banks
  • Credit unions
  • ‘Big Four’ consortium
FinTech Regulatory Sandboxes by financial authorities
  • ADGM
  • MAS
  • ASIC
  • FCA
  • Bank of Indonesia
  • HKMA
  • Bank of Thailand
  • Bank Negara Malaysia
</tbody> </table>

The examples of both institutions and activities are certainly not exhaustive, but illustrative some of the mainstream ways financial institutions find suitable for themselves to learn and adopt the technology of the future. After all, a Goldman Sachs research in early 2015 estimated that a part of the traditional financial services’ revenue – $4.7 trillion out of $13.7 trillion – is at risk of being displaced by new technology-enabled entrants which include FinTech players.

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