Financial Institutions’ Interest in Digital Assets Climbing
Updated: Mar 28, 2019
by Monette Stephens, Head of Corporate Development, TokenSoft
Blockchain technology is expanding into all areas of business, and financial institutions are increasingly getting involved. While historically conservative financial institutions were previously only comfortable dipping a toe into cryptocurrencies, now banks, asset managers, custodians, and exchanges are jumping in with both feet. In fact, many of the largest global banks, financial systems and traditional exchanges are designing and deploying blockchain-based systems because they see the possibilities and opportunities for decreasing costs and increasing efficiency. We agree.
Projects to date span a broad spectrum, including managing cross border payments, settlements, trade finance and issuance of tokenized financial instruments. Validating the arrival of Wall Street 2.0, Fidelity Northern Trust and Goldman Sachs have all indicated their intent to provide cryptocurrency custody solutions and institutional trading. Financial institutions want to maintain a relationship with their customers, cut costs and utilize technology to streamline processes.
Banks globally are extending these capabilities in both open and closed networks to solve complex business challenges. For example, utilizing blockchain in financial systems can decrease both the cost and time for inter and intra bank financial processes, trade finance and settlements. Additionally, tokenized security issuances of warrants, CDs, bond and other types of financial instruments can be streamlined and made available for purchase institutionally and commercially.
Banks are now developing new platforms for streamlining the disjointed debt process. JPMorgan, Bank of America and Citi alone issued more than $1tn of bond sales last year, about a fifth of the $7tn raised by governments and companies last year.
Banks and financial institutions require scale, security and compliance to confidently enter this 2.0 world. At TokenSoft, we are uniquely positioned to help firms overcome these challenges. Working with consortiums and alliances focused on the financial services sector, TokenSoft supports the major blockchain and distributed ledger technologies and is a proven leader in security token issuances with global experience, upholding compliance requirements in over 50 countries.
 CNBC, Fidelity just made it easier for hedge funds and other pros to invest in cryptocurrencies, Kate Rooney, October 15, 2018
 Bloomberg Cryptocurrencies, Northern Trust looks to join burgeoning crypto custody business, Olga Kharif, July 31, 2018
 Bitcoin Exchange Guide, Goldman Sachs crypto custody offering will utilize Bakkt Trading Platform, Krystie M, October 17, 2018
 Financial Times, Big banks develop new platform for bond issuances, Eric Platt in New York and Robin Wigglesworth, March 25, 2018