Why capital markets should embrace blockchain

Author: Jimmie Franklin | Published: 7 Apr 2020

Global capital markets could benefit significantly from the transparency and efficiencies provided by blockchain.

Interest in the technology continues to build – in recent weeks US bank Citi’s global head of commodity trade finance praised the technology’s capability to modernise commodity trading and China’s central bank has increased funding for its blockchain trading platform.

"In capital markets, blockchain-based systems can improve trust and transparency, not only for investors but also for regulators – at far lower costs – by eliminating the need for reconciliations," said Siddhartha Siddhartha, CEO and founder of Intain. He added that they can do this by providing an audit trail; enabling real-time reporting; and in due course, with tokenisation, helping a move to mark to market for many securities currently priced at mark to model.

"Within capital markets, there is large scope for using blockchain under current regulations," he continued. "Not enough is being done because...