Financial market infrastructures (FMI) is the technology that enable trillions of dollars of capital to move globally on a nightly basis. Some of the infrastructure still runs on systems designed in the 1970s, including mainframe and COBOL. Blockchain is now starting to be deployed as a solution to modernize these systems, after years of trials and proof-of-concepts. A key reason for blockchain adoption is that it provides a single, decentralized source of truth, data verifiability and programmable assets to an ecosystem of market participants that currently maintain siloed ledgers. In this session, we will share how financial services have deployed blockchain in order to enable new services, achieve greater efficiency, and improve client service delivery.
Financial services has become one key application category for blockchain. Specifically, the benefits are seen in the backend machinery that powers financial services. The backend machinery for financial services is also called financial market infrastructure. Depending on the sub-category, the backend machinery can be paper based (no digitization), or multiple digitized systems running in separate siloes, with its own database.
Blockchain is transforming the infrastructure for financial market because it provides several key ingredients : a single TRUSTED source of truth, the intelligence of smart contract, and auditability. That’s the power of blockchain - providing multiple transformative value in one technology adoption. The repurchase (repo) market is only the start. Any intra and inter enterprise transactions systems that passes through multiple siloes before completing a transaction process is now ripe to be done in a fraction of the time – thanks to blockchain.
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