Wall Street Bankers Use Blockchain Beyond Crypto

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Wall Street Bankers Use Blockchain Beyond Crypto

As blockchains are seen as the shared ledger technology behind facilitating and tracking cryptocurrency transactions, Wall Street bankers are beginning to explore its use in commerce and beyond, even as they shun direct crypto investments.

The country’s largest bank, JP Morgan, has already started processing some transactions on blockchain networks. Goldman Sachs is actively exploring it, as are other major banks, The Wall Street Journal reported Monday (August 22).

Because the system Wall Street currently operates on is outdated and slow, bankers are looking to blockchains as a cheaper and faster alternative with the potential to generate bigger profits, according to the report.

See also: 7 of the 10 largest enterprise blockchain investors are targeting payments

The block chainswhich are also known as distributed ledger technology, use a central register to track assets, transactions and ownership. The blockchains used on Wall Street would be authorized networks with a central party controlling who is authorized.

“Blockchain technology will rewire all financial services,” Tom Farley, the former chairman of the New York Stock Exchange, told the Journal.

Read more: PYMNTS Intelligence: Assessing the Return on Investment of Blockchain Technology

Wall Street firms have been testing blockchain projects for about five years, but the report notes that so far the impact on financial transactions has been minimal. Goldman and others have said that managing blockchain transactions would likely reduce some risk and make it easier to identify shareholders.

The report notes that Mathew McDermott, who leads the digital assets group at Goldman, was originally wary of blockchain technology. However, he told the Journal that his stance had changed, saying: “I’m not doing this just to satisfy my curiosity. Everything has a commercial engine.

Outside of banking, other companies are also exploring the technology. For example, Walmart uses blockchains to track its supply chains, and the Journal noted that in real estate, title companies have begun exploring the use of blockchains to register home ownership.

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