Blockchain technology is expected to be fully adopted by the finance industry in the next 5 to 10 years according to experts.
The digital ledger technology could radically shake up five sectors as it streamlines the process and opens up the market : trade finance, payments, trading, insurance and digital identity.
“We will definitely move from the lab to the business model. It’s time to innovate and change,” Laurent Marochini head of Innovation Societe Generale Securities Services said at Fintech Connect, in London.
It will change the way we do business in the banking sector”
“It will change the way we do business in the banking sector,” Marochini predicts that as blockchain becomes more common in the financial services.
The Societe Generale expert also expects that the digital disruption caused by cryptocurrencies and the ledger technology will crate opportunities for new businesses, especially as there will be growing need to keep digital assets safe.
“The are currently 500 crypto hedge funds in the world and half of them are their own custodians. If tomorrow I have $500m of assets under management, I would prefer giving the responsibility to a third party, like a bank,” Marochini as he remembered the Quadriga debacle.
Even as the is a growing need for custodians, banks are not jumping on the opportunity, leaving room for tech entrepreneurs to answer that demand.
“We don’t see a lot of banks talking today about crypto custody and that’s a business opportunity,” he added.
The big names in the financial world have been slow adopting blockchain but have been warming up to the technology. HSBC aims to shift $20bn worth of assets to a new blockchain-based custody platform by March.
Credit Suisse’s asset management arm and Banco Best, a Portugal-based bank, have used blockchain technology to process an end-to-end fund transaction and said “considerable benefits” would come from the technology.
UBS has started executing…