Despite the fact that the blockchain was initially developed as a freely-accessible, utility-like alternative to traditional means of recording and storing the transfer of assets between counterparties within a distributed, shared network, many fintech start-ups are focused on developing private blockchains in 2015 that can only be accessed by pre-approved participants. GreySpark believes this trend shows a disconnect between the business imperatives of fintech start-ups to create blockchain solutions that garner widespread uptake and the desire of banks and buyside firms to support a DLT solution designed to service every aspect of the pre- and post-trade lifecycle.
This report defines DLT and the blockchain protocol, and it analyses how banks and exchange platform operators are testing their use within both proprietary environments and on a consortium basis. The report also analyses the potential for a raft of blockchain applications developed by fintech start-ups that could expand the functionality of those solutions within the capital markets industry in the future. These solutions aim to bridge the gap between distributed ledger systems and the world of mainstream financial infrastructure.
