The value of blockchain in the global financial services market could reach nearly half a trillion dollars within 2030, according to IHS Markit.
The information provider believes given the number of blockchain projects expected to launch and become commercially developed in the coming years, revenues could likely reach $462 billion.
“The Securities and Exchange Commission in the United States, the Financial Conduct Authority in the UK, the Hong Kong Monetary Authority and other regulatory bodies are reacting positively towards blockchain technology within the financial sector,” said Don Tait, principal analyst, IHS Markit.
“The backing by these regulatory bodies bolsters the credibility of blockchain technology, helping it become more mainstream.”
Blockchain is currently being rolled out in a number of financial services sectors, including cross-border payments, trade finance, syndicated trading, corporate actions, and clearing and settlement around the world.
The technology is also being tested for certain post-trade functions in the derivatives, securities and repo markets by market infrastructures, banks and technology vendors, as well as for processing US equities transactions.
“By applying blockchain to the clearing and settlement of cash securities – specifically, equities – investment companies could save up to $12 billion in fees,” added Tait. “Blockchain can also save financial organisations money, by cutting out many of the traditional middlemen involved in the financial sector.”