FY360° | Banks and the use of Blockchain Technology...

Standardisation of messages across entities and platforms is extremely powerful.


Standardisation opens the door to solve optimisation and cost challenges that many financial institutions face. An example of this is what the FIX protocol has done for the electronic trading market.

Without FIX there would be no basis for High Frequency trading or other strategies where speed and efficiency matter. Another example of where standardization has improved efficiency and cost is SWIFT. Before the consortium was formed, fragmentation within the global payment network made payments a lot more expensive than they are today for cross border payments.

In the digital currency space, we are far from a standardised solution. There are many innovative ideas and technologies all trying to solve various issues, but no road leads to a solution that solves all the challenges that financial institutions face which is reducing cost and increasing profit. Due to regulation, particularly BASEL III, banks are required to manage their capital levels more stringently meaning that businesses within banks that depended on...

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Jeudi 3 Septembre 2015


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