Blockchain Use Cases in Capital Markets
Blockchain has continued to become popular over the years. However, it was not until 2017 that blockchain got the attention of mainstream media, which was prompted by the rise of the ICO, hence massive price increases in 2017. The finance industry, especially banks around the world, initially viewed blockchain as direct competition, but have since embraced the concept.
The Agriculture Bank of China
- The Agriculture Bank of China, through blockchain, has managed to develop unsecured agriculture loans for e-commerce merchants, with the help of a decentralized network that processes loans automatically.
- On March 7, 2019, Alfa-Bank joined Marco Polo Network, the largest and the most promising trade finance network, to launch Corda blockchain technology, in a bid to provide significant efficiencies. Through Marco Polo Network, Alfa-Bank has managed to integrate into trade orchestrations, logistics, and other transactions in real-time.
The Bank of China
- In December 2019, the Bank of China used blockchain technology to issue financial bonds worth $2.8 billion to small and medium enterprises (SMEs). The bank has continued to use blockchain to attract and retain small and medium business enterprises
JP Morgan Chase, U.S
- Through “JPM Coin,” JP Morgan Chase ensures that customers can enjoy instant transfers when making payments over a blockchain platform.
- When a client sends money to another client using the blockchain network, JPM Coins are instantaneously transferred and redeemed for the equivalent U.S dollar amount, hence minimizing the typical settlement duration.
Commonwealth Bank, Australia
- Commonwealth Bank Australia (CBA) has a solid track record of using blockchain technology as a collaborative innovation. CBA explores blockchain technology as a way to revolutionize bank guarantees thus simplifying banking processes and creating transparency between the bank and its customers. Further, CBA views blockchain technology as a way to process document exchange in real-time and saving time on the issuing process.
Bank of Thailand (BOT)
- The Bank of Thailand (BOT), with the help of government agencies and commercial banks in Thailand, managed to launch blockchain in 2019. So far, blockchain technology has continued to help the bank ease domestic and international transfers for its customers. By utilizing DLT, the bank has managed to issue bond scripless and electronic letters of guarantee.
Standard Chartered, Singapore
- In 2019, Standard Chartered Bank, Singapore unit completed its first blockchain-powered trade financial deal. The bank reported that the blockchain network has been resourceful in the agribusiness supply chain. Through the blockchain network, Standard Chartered Bank in Singapore has managed to speed up supply to one day, instead of five to seven business days.
- As of 2017, the bank’s assets were estimated to be over $600 billion on their balance sheet. Through a blockchain network, the bank enjoys a less cumbersome paper-based system.
LatiPay, New Zealand
- Through the Hashcash blockchain network, LatiPay has managed to create a platform which allows international traders such as Chinese payers to transact with Chinese Yuan, while New Zealand and Australian traders receive their full payment in NZD or AUD.
- There are no hidden costs to New Zealand or Australian merchants. In this case, Chinese traders can transfer payment through their ideal banks virtually, or platforms such as WeChat and Alipay, using their currency of CNY. Once the payment is wired to a New Zealander or Australian, it can be withdrawn in New Zealand or Australian currency.
The Federal Bank, India
- In 2019, Indian private bank, Federal Bank, started giving remittance services through blockchain technology. Through this technology, Federal Bank clients would be able to transact across the border. The bank has continued to use blockchain-powered solutions to attract even more customers across the region.
China Construction Bank
- China Construction Bank, through cross-bank and cross-border loan issuances, supports small business through the blockchain-based platform, which has processed more than $53.5 billion worth of transactions.