“For quite some time, there have been debates as to how useful a blockchain can be in the financial world. Especially capital markets can gain a lot from embracing distributed ledger technology. Albeit this technology is no guarantee of success or solving inefficiencies, the technology is worth keeping an eye on. At the same time, there are particular challenges to keep in mind, albeit these are not all technology-related.
When people think of distributed ledger technology in the financial world, cost-cutting measures come to mind. Moreover, automated processes could reduce a lot of inefficiency and wasted resources. Although a lot of financial processes have been digitized already, there is still a lot of paperwork to be completed.
This is one area where distributed ledger technology can make a huge difference. Reconciling between participants through a centralized means will be removed. Users can reconcile their books in real-time without leaving their location. Additionally, there is a new level of communication to enjoy. But more importantly, any trade delays will be reduced to a bare minimum.”