Blockchain Takes the Stage at the Fintech Symposium • Live Bitcoin News
The Depository Trust and Clearing Corporation (DTCC) was a big hit at the recent Fintech Symposium. Among the two main topics discussed were cryptocurrencies and blockchain technology.
Blockchain Is Becoming More Mainstream
The DTCC primarily works in artificial intelligence (AI), the Internet of Things (IoT) and cloud computing. It also has amassed a $48 trillion portfolio comprised of various stocks, bonds and additional assets. In many ways, DTCC can be considered a traditional investment and software firm, and the fact that it’s discussing crypto is more proof that the technology is becoming more mainstream and reaching far stretches of the world.
This is comparable to a recent story (published by Live Bitcoin News) regarding E-Trade, a traditional investment and trading company that announced it would soon be rolling out cryptocurrency trading for its customers. Digital assets are seemingly growing in popularity, and companies like E-Trade and the DTCC are looking to make room for them.
Arguably, they don’t want to miss out on the “fad” and risk losing any money in what can now no longer be considered a speculative arena, but a legitimate asset class.
The DTCC says it is preparing to launch its own blockchain. It will store information regarding $10 million in transactions each year. In addition, the company recently published a document talking about how securities should be managed when they’re “issued on a blockchain.”
The company’s CEO Michael Bodson explains:
The potential of DLT [Distributed Ledger Technology] is undeniable, but the question remains whether its enormous power to transform financial services will ever be fully harnessed. Personally, I have confidence in the technology, but our own experience with it reinforces that it’s going to take time and patience, and much more hard work and practice.
Bodson certainly has a point with his words. Blockchain, for the most part, is primarily being used strictly on a crypto basis, though it has been proven to boast capabilities regarding supply chain coverage, as well as uses in industries like healthcare and even traditional banking. The technology has its benefits, but it’s just not being used enough. Bodson clearly states that this is because the technology is so new.
However, this may be on the verge of change. A recent poll conducted amongst 300 separate DTCC customers showed that approximately 74 percent of those surveyed were “participating in blockchain projects” that would be offered to customers in the coming years. However, only 23 percent of these customers planned to involve these blockchains with cryptocurrencies given fears of fraud, regulation-based scrutiny and price volatility.
Can’t Everyone Relax?
Commenting on these fears was Bob McElrath, the blockchain architect for Fidelity Digital Assets. He believes that in the future, all cryptocurrencies will become stable coins, thereby alleviating present concerns. He states:
If you can’t do custody, you can’t do anything else.
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