One of the initial industries, that stands to benefit greatly from the adoption of blockchain technology and cryptocurrencies is the banking and financial institution sector. There are many inefficiencies that currently exist in this area that can be easily resolved through the adoption of this technology.
The capital market giant from Germany, Deutsche Borse has now made their own dedicated department for looking at the ways in which they can apply blockchain technology to what they do. This department has been named the DLT, Crypto Assets and New Market Structures.
The banking giant has been looking into this sector for some time now. So far, they have worked with securities depositors from across the world as to how they can utilise smart contracts when it comes to the mobilisation of collateral and a new securities settlement process that is based on smart contracts.
They are currently in the phase of ideation and exploration according to the Managing Director of this new department. They are looking at different trends and technology that is currently available in the space and being deployed by other parties.
They have also made a few acquisitions in the space to date. For example, they are partnered with HQLAx which is a company that specialises in collateral management and they have been in the process of developing their own securities lending operating model that is based on blockchain technology.
As part of this project, they are already working with numerous different banks and they have also had serious discussions with the various regulatory bodies to ensure that compliance is being met. It appears that further acquisitions could be made in the near future.
Rather than developing these processes themselves, Deutsche Borse has the adequate funds in their war chest to partner up and acquire those companies that are already a long way into the process and have deployable systems that can be used almost straight away.