Blockchain in China: Will Decentralization Transform the Financial Industry?

by Hua Zhang, November 23, 2016
Other
Asia-Pacific

Abstract

Blockchain technology may become the infrastructure that transforms the business model of financial institutions and markets. In the securities industry, the technology will change the issuance of securities, clearing, voting at shareholders’ meetings, and equity crowdfunding. In the banking industry, blockchain will bring changes to payments, billings, and supply chain finance.

In the report Blockchain in China, Celent examines the characteristics of blockchain applications in securities and banking. Blockchains are especially suited to areas that are dependent on credit and where there are inefficiencies in the current centralized model, including issuance and brokerage, and for payments and transactions.

“Blockchain technology is not likely to bring about financial decentralization in the short term; banks, stock exchanges, and registration and settlement institutions will still continue to play important roles in the financial system and markets,” says Hua Zhang, an analyst with Celent’s Asian Financial Services practice and author of the report.

This report provides an overview of China’s blockchain infrastructure, applications, and trends. It contains four figures and three tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
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Europe (London)
Chris Williams
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Asia (Tokyo)
Yumi Nagaoka
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Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

3

 

Significance of Decentralization

3

 

Types of Blockchains

4

 

Sectors Suited to Blockchains

5

Securities Industry Applications

6

 

Registration, Issuance, and Trading of Securities

6

 

Clearing and Settlement of Securities

6

 

Shareholder Proxy Voting

7

 

Application in Equity Crowdfunding

8

 

ChinaLedger

8

Banking Applications

9

 

Ping An Bank Is the First Chinese Bank to Join CEV

9

 

Payments

10

 

Lower Operating Risks in Bill Pay

10

Conclusion

11

Leveraging Celent’s Expertise

12

 

Support for Financial Institutions

12

 

Support for Vendors

12

Related Celent Research

13

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