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Blockchain

Blockchain will take years to implement on Wall Street

July 16, 2019, 11:22AM EDT

Although investments in blockchain technology continue, the switch to distributed ledger technology will not be instantaneous.

So far, the investments have not given the expected results as the technology does not yet offer what the investors are looking for, Reuters writes.

A review of 33 projects launched over the past four years by large companies shows there is still a long way before the technology can see more widespread adoption. Bloomberg writes that at least a dozen of these projects are still stuck in the testing phase, while those who managed to wrap up testing have not yet achieved extensive adoption.

“This is a transformation of the market. It isn’t a big bang,” said Hyder Jaffrey, head of strategic investments for UBS AG investment bank. “Three-to-seven years” may pass before there is any significant impact, he believes.

UBS has endorsed a cryptocurrency-project called Utility Settlement Coin. After half a decade of work, the project, now being developed by Fnality, is supposed to be commercialised in 2020. According to Fnality CEO Rhomaios Ram, in order for the project to have an impact, other markets need to implement blockchain, which may take time.

Santander head of digital investment banking John Whelan believes in order for blockchain projects to thrive, they need to concentrate on three things—technology, demand and compliance. He believes early adopters might not have appreciated “the extent to which the three parts have to move together.”

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