September 27, 2015
If you are wondering why there is so much buzz around blockchain and what the banks are doing with it, then this is the right place. The financial services industry is at the cusp of a major transformation and the aim is to enable transparent, secure and efficient financial services at lower cost. It's important to note that apart from startups, many banks have been exploring blockchain in some way or the other. They have set up teams, they are doing experiments, they are investing time and money and they don't want to be left behind.
Banks are looking at utilizing the ledger system to enhance the current processes of various financial services. The original concept of the bitcoin blockchain has been to enable a public blockchain to solve the issue of dependence on a central system. However, financial services firms are now looking at a different approach wherein they could use a private blockchain or a semi-public blockchain. You can learn more about these concepts from our previous article.
We have provided multiple analyses such as a timeline of the different banks and financial institutions that are showing interest in blockchain globally. As a further update, below is a comprehensive overview of all the initiatives and experiments in this space in the form of an infographic.
We found a total of 26 different banks that have either partnered with or expressed interest in exploring blockchain. They are – JP Morgan, Citibank, Barclays, Credit Suisse, BBVA, Santander, Lloyds, BNP Paribas, Bank of America Merrill Lynch, HSBC, Deutsche Bank, RBS, Rabobank, ABN Amro Bank, ING Bank, Westpac, Commonwealth bank, ANZ Bank, DBS Bank, Societe Generale, Standard Chartered, LHV Bank, Fidor Bank, CBW Bank, Cross River Bank, and USAA Bank.
Apart from banks, the other financial services firms who have expressed interest are: US Federal Reserve, Bank of England, Euro Banking Association, BNY Mellon, Goldman Sachs, UBS, NASDAQ, Visa, Morgan Stanley, and Western Union.
The different blockchain startups involved are: Ripple Labs, Earthport, GetGems, Everledger, R3CEV, Circle, Safello, Digital Asset Holdings, Symbiont, Coinfloor, Coinbase, Chromaway, Coin Republic, Clearmatics, Kraken, and Bitcoin.de
The concepts that are being explored are: Asset registries, smart contracts, smart shares, smart bonds, trading, cross-border payments and digital payment system, trade execution and settlement, digital security, risk management, post-trade processing services, regulatory reporting, KYC, AML, and faster payments.
For a comprehensive analysis on the various use cases that are being explored using blockchain, you can view the summary of our report here.