Blockchain Technology in Financial Services: Beyond the Hype

We’re entering an era where the practical applications of blockchain in financial services have started to become more apparent, effectively moving beyond the general hype around this revolutionary technology. In this blog, we explore what those promise to be.

Improved efficiency and transparency in transactions

As noted by Deloitte, blockchain can significantly speed up transaction times in sectors such as cross-border payments, reducing them from days to mere seconds. Besides, the advanced encryption and immutability of blockchain technology can lead to higher levels of transparency and security, promising to help minimize fraud and reduce overhead costs.

Smart contracts

Smart contracts – self-executing contracts with the terms of the agreement directly written into code – promise countless uses in areas such as securitization, derivatives, and insurance. Implementing smart contracts can automate many labor-intensive processes and significantly reduce associated timespans, potentially saving hundreds of millions of dollars annually.

Tokenization of assets and access to illiquid markets

As McKinsey explains, blockchain can facilitate the process of tokenization, making it easier for investors to purchase a fraction of an asset (real estate, art, etc.). This functionality provides access to previously illiquid markets, creating growth opportunities for both investors and market owners.

Hedge against traditional economic systems

Cryptocurrencies, the best-known use case of blockchain technology, have become increasingly prevalent as a hedge against traditional economic system uncertainties, such as inflation or political instabilities.

While still in its infancy, the use of blockchain in financial services is showing significant promise, challenging established norms and offering the potential to transform the industry. At Elevate Labs, we are committed to being at the forefront of this revolution, ready to translate these opportunities into tangible solutions. Join us as we journey beyond the hype of blockchain and delve into its potential.