The Gateway to Algorithmic and Automated Trading

Post Trade Distributed Ledger Group: blockchain to become mainstream within five years

First Published 13th February 2017

Post Trade Distributed Ledger Group survey finds half of distributed ledger technology professionals forecast global post-trade blockchain adoption in between three to five years.

Blockchain will become adopted in the financial post-trade area in three to five years, according to almost half (48%) of the membership base of the Post-Trade Distributed Ledger (PTDL) Group. In addition, just over a quarter (29%) of members believe blockchain will become adopted in as little as the next one to two years, though 21% forecast it will take in excess of five years.

The survey of PTDL's global membership found that the top three benefits of distributed ledger technology will be operational cost savings (cited by 81%), increased efficiency/ reduced settlement cycles (67%), and transparency (43%). In a reflection of the significance of the new technology, a fifth (20%) of respondents said that the strategic importance of blockchain within their own organisation was 'very high', with an additional 34% saying it was 'high'; only 7% said it was a 'low' priority.

PTDL Group members are from all continents and include global banks, custodians, Central Securities Depositories, clearing houses, exchanges, regulators, government agencies and central banks. Its organising committee is made up of representatives from CME Group, Euroclear, HSBC, London Stock Exchange Group and State Street.

PTDL's members felt that industry adoption remains the most significant barrier to implementing blockchain in a wider post trade industry context - this was cited by 78% of respondents. Regulation (56%), a clear business need (55%), concerns around confidentiality (51%), and lack of standardisation (49%) complete the top five in terms of impediments. Lack of available talent is seen as the least significant concern (23%).

  • Copyright © Automated Trader Ltd 2017 - Strategies | Compliance | Technology

click here to return to the top of the page