As an example, a financial institution can use blockchain to improve post-trade processes by increasing efficiency and reducing settlement times and collateral requirements. Blockchain technologies are most popular among early-stage companies, but some long-established businesses are also using them. A year ago, business leaders wanted to understand these technologies' potential uses but did their research quietly. Now, it seems no week goes by without a major company announcing another blockchain pilot. A sampling of recent activity includes:

Financial services firms using the blockchain in asset management, insurance, clearing, trading, international payments, and trade finance.
Energy and utilities employing blockchain technologies in energy exchanges; consumer trading; and the opportunity for real-time energy price transparency, automation, and demand response.
Healthcare providers using blockchain-based systems to share error-free medical and service records in real time.
Supply chain tracking utilizing blockchain applications to verify components or orders across sprawling geographies.
Transportation and logistics companies exploring use of blockchain systems for everything from monitoring of fleet maintenance to detection of payments fraud.

Building a Foundation for Adoption

Full integration of blockchain technologies and cryptocurrencies into the global corporate and financial system infrastructure will take years, if not decades. But when this transition does occur, the ramifications will likely be vast. It is estimated that banks, as an example, could reduce infrastructure costs by billions annually by using blockchain technology in areas like central finance reporting, compliance, and operations. These technologies represent a great opportunity not just in financial services, but across the global economy.

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