The blockchain technology underpinning bitcoin, has transformed the fintech world. Banks have realised that this technology is more cost effective, faster and transparent. World’s largest banks are coming together to develop a blockchain platform. This common platform will set industry standards for all banking transactions. UBS, the Swiss bank has collaborated with Deutsche Bank, Santander and BNY Mellon to harness the benefits of decentralized computer networks to streamline processes and create an efficient financial market.
Corda platform was developed by consortium of world’s 70 biggest financial institutions led by New York based technology firm R3. It’s considered as the biggest shared effort between bankers, insurers and fund managers to use blockchain in global finance. Corda blockchain platform is exclusively designed to build and support financial products created by consortium members.
Banks have sensed the potential of blockchain and the commercial benefits it could bring. Blockchain’s adoption could create multibillion dollar industry around the financial sector alone. Financial institutions strives to safeguard their lucrative innovations by obtaining patents. There were over 350 patents filed in fintech intellectual category, up from mere 180 patents last year.
Goldman Sachs takes the lead in setting up industry standards for digital currency. Recently, Goldman Sachs was granted a patent for “SETLcoin” cryptocurrency. This blockchain based currency will be used for instant settlement of securities and capital transactions. Goldman Sachs believes in disruptive blockchain potential and have been consistently innovating and investing in blockchain avenues.
Citibank is also extensively researching on blockchain and is developing its own cryptocurrency called Citicoin, a competitor to bitcoin. The bank aims to adopt blockchain in for instant payment settlement and speedy remittances.
JP Morgan has teamed up with IBM and Linux to create open source ledger project called Hyperledger. This product will serve efficient settlements of all digital assets in the banking industry.
Financial institutions are leaving no stone unturned to unleash lucrative opportunities by creating blockchain based digital currencies. The competition is expected to get more intense with more blockchain innovations awaiting to hit the multibillion dollar fintech industry.