The potential applications of blockchain-style distributed ledgers in the institutional capital markets are many. Recent research by Greenwich Associates finds that risk reduction tops the list of benefits. OTC derivatives, private stock, repo, and loan markets are asset categories likely to profit from distributed ledger technology. While more established markets like U.S. equities could benefit from the blockchain approach as well, those financial products where automation is still limited are most likely to see quick adoption. With nearly half the firms participating in the study actively investigating blockchain and digital ledger technologies, eventual acceptance seems all but guaranteed. MethodologyBetween May and June of 2015, Greenwich Associates interviewed 102 financial professionals to determine the level of awareness and understanding of distributed digital ledger technologies among institutional financial services firms.
