When it comes to blockchain, financial services are leading the way. Up from $2.5 billion today, industrial blockchain technology is expected to be $2 trillion worth of value by 2030, according to a report by IHS Markit.
The financial industry is one of the first to make use of the cost savings and efficiencies realized by integrating blockchain business strategies, according to analysts. “Early adopters of blockchain have mostly been companies in the financial services industry, which use it mainly in payments-related solutions,” said Don Tait, a principal analyst at the firm. “However, the technology is poised to ripple through virtually every industry, affecting almost all organizations in the coming years.”
Besides payments, blockchain has applicability in financial services from share trading and claims management to asset custody in public and private markets, according to the report. Even small cost savings can unlock “significant” business value for financial services companies.
“There is barely a day that goes by without a fresh announcement about how banks and financial institutions are seeking to use blockchain technology to transform significant parts of their business,” Tait said. “The financial vertical market will be the largest-value market to use blockchain.”