Blockchain in the Capital Markets: A Smart Distributed Future

by Brad Bailey, February 17, 2016
Industry Trends
Global

Abstract

This report looks at use cases and implications of Blockchain 2.0. It brings clarity to a rapidly moving space across cryptocurrency, smart contracts, and distributed ledgers in the global capital markets.

The threat of competitive disintermediation of capital market players and the potential power of a blockchain or distributed ledger future have Wall Street’s best and brightest considering a myriad of use cases. Major capital market participants are aligning with competitors, traditional technology providers, and Fintech disruptors to create a new vision of the issuance, trading, and operations across asset classes and geographies.

“Blockchain went from 0 to 60 in the blink of an eye, rocketing into the collective consciousness of capital market participants. 2016 is the do or die moment for use cases in our space,” says Brad Bailey, a research director with Celent’s Securities and Investments practice and author of the report. “Market participants recognize that legacy technology and architecture must change, and that business models developed for a less restrictive regime in the capital markets must adapt.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

3

 

It’s All About the Plumbing

3

 

The Decision-Making Matrix

4

Solution Sets in Capital Markets

7

 

Front-to-Back Office

9

Key Capital Market Vendors

13

Where Do We Go from Here?

15

 

Implications on Capital Market Participants

15

 

Key Open Questions for 2016

16

Leveraging Celent’s Expertise

18

 

Support for Financial Institutions

18

 

Support for Vendors

18

Related Celent Research

19

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