- Blockchain technology can speed up financial transactions.
- Most major financial firms are already experimenting with blockchain.
- Business needs will determine the future of blockchain.
Money should move at the speed of light. But it still doesn’t – just ask anyone waiting days for a check to clear or stock trade to settle. But now, a new technology called blockchain aims to finally transform the financial services industry.
All sorts of transactions – from stock and bond trades to voting – can be sped up, made more secure, and executed at lower cost using blockchain, says Ninou Sarwono, the emerging technology lead at Capital Group. “It’s not just disruptive. It’s a foundational technology that could revolutionize industries and create new economies.”
Most large financial institutions are experimenting with blockchain, if not already adopting it. The technology is being used in some secured loan markets. And now Capital Group is looking at how the technology could affect how it conducts trades.