Five Ways Financial Institutions/Authorities Work With Blockchain Technology

September 29, 2016     By : Sofia

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/

VC fund

  • Goldman Sachs
  • Santander
  • Visa
  • Citi
  • JP Morgan
  • BNP Paribas
  • BBVA
  • NYSE
Collaboration/

Partnership

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

Non-startup partnerships

  • BNY Mellon
  • Goldman Sachs
  • Citi
  • UBS
  • BTMU
  • LHV Bank
  • Bank of England
  • RBC
  • Westpac
  • USAA
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

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.

Sofia

Sofia is a contributing writer for LTP based in New York. She is a market research professional skilled in data analysis and visualization. Sofia has an extensive experience in consumer behavior studies and marketing analytics. She is passionate about disruptive startups with innovative business models that are having a powerful impact on the industries.

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