Blockchain Adoption in Financial Post-Trade Sector

Editorial & Advertiser disclosure

Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Blockchain will become adopted in the financial post-trade area in three to five years, according to almost half (48%) of the membership base of the Post-Trade Distributed Ledger (PTDL) Group¹. In addition, just over a quarter (29%) of members believe blockchain will become adopted in as little as the next one to two years, though 21% forecast it will take in excess of five years.

The survey of PTDL’s global membership found that the top three benefits of distributed ledger technology will be operational cost savings (cited by 81%), increased efficiency/ reduced settlement cycles (67%), and transparency (43%). In a reflection of the significance of the new technology, a fifth (20%) of respondents said that the strategic importance of blockchain within their own organisation was ‘very high’, with an additional 34% saying it was ‘high’; only 7% said it was a ‘low’ priority.

PTDL Group members are from all continents and include global banks, custodians, Central Securities Depositories, clearing houses, exchanges, regulators, government agencies and central banks. The organisation brings together major post-trade industry participants to share information and ideas about how distributed ledger technologies can transform the post-trade landscape. Its organising committee is made up of representatives from CME Group, Euroclear, HSBC, London Stock Exchange Group and State Street.

Despite the compelling arguments for the adoption of blockchain, PTDL’s members warned that industry adoption remains the most significant barrier to implementing blockchain in a wider post trade industry context – this was cited by 78% of respondents. Regulation (56%), a clear business need (55%), concerns around confidentiality (51%), and lack of standardisation (49%) complete the top five in terms of impediments. Lack of available talent is seen as the least significant concern (23%).

Jörn Tobias, Managing Director at State Street and PTDL Group representative, said: “The survey shows that blockchain could become mainstream in just a couple of years, with benefits such as better transparency, shorter settlement cycles and cost savings clearly identified by our members. The big barrier to growth, however, is seen as caution: fears over adoption and hesitation about embracing what remains cutting-edge technology. This is a core focus for the PTDL Group – engaging with financial services firms, technology companies and other stakeholders and helping catalyse adoption across the world for the benefit of all parties the financial post-trade area.”

Blockchain will become adopted in the financial post-trade area in three to five years, according to almost half (48%) of the membership base of the Post-Trade Distributed Ledger (PTDL) Group¹. In addition, just over a quarter (29%) of members believe blockchain will become adopted in as little as the next one to two years, though 21% forecast it will take in excess of five years.

The survey of PTDL’s global membership found that the top three benefits of distributed ledger technology will be operational cost savings (cited by 81%), increased efficiency/ reduced settlement cycles (67%), and transparency (43%). In a reflection of the significance of the new technology, a fifth (20%) of respondents said that the strategic importance of blockchain within their own organisation was ‘very high’, with an additional 34% saying it was ‘high’; only 7% said it was a ‘low’ priority.

PTDL Group members are from all continents and include global banks, custodians, Central Securities Depositories, clearing houses, exchanges, regulators, government agencies and central banks. The organisation brings together major post-trade industry participants to share information and ideas about how distributed ledger technologies can transform the post-trade landscape. Its organising committee is made up of representatives from CME Group, Euroclear, HSBC, London Stock Exchange Group and State Street.

Despite the compelling arguments for the adoption of blockchain, PTDL’s members warned that industry adoption remains the most significant barrier to implementing blockchain in a wider post trade industry context – this was cited by 78% of respondents. Regulation (56%), a clear business need (55%), concerns around confidentiality (51%), and lack of standardisation (49%) complete the top five in terms of impediments. Lack of available talent is seen as the least significant concern (23%).

Jörn Tobias, Managing Director at State Street and PTDL Group representative, said: “The survey shows that blockchain could become mainstream in just a couple of years, with benefits such as better transparency, shorter settlement cycles and cost savings clearly identified by our members. The big barrier to growth, however, is seen as caution: fears over adoption and hesitation about embracing what remains cutting-edge technology. This is a core focus for the PTDL Group – engaging with financial services firms, technology companies and other stakeholders and helping catalyse adoption across the world for the benefit of all parties the financial post-trade area.”