Blockchain in capital markets

Financial services technology specialist GBST Holdings has released the findings of its initial study into blockchain technologies for international capital markets participants.

Tracking the ongoing benefits of digital disruption, the “Four scenarios for Blockchain in Capital Markets” discussion paper identifies the importance of distributed ledger technology and smart contracts as they potentially reduce inefficiencies and costs, as well as create new market infrastructure capable of challenging traditional capital markets operators.

Nick Clarke, executive manager – institutional product management, GBST said: “At one end of the spectrum, blockchain technologies are being proposed to completely rebuild capital markets infrastructure and at the other end, blockchain will simply replace legacy technology in use by clearing houses and central securitie depositories. We place these opportunities into context and analyse what these outcomes could mean for current market participants.”

”In each case, features such as agreed consensus, redundancy and smart contracts will have varying benefits for our industry and need to be weighed against the cost of implementing each model. Collaboration with regulators and industry agreement on operational models will be key.”