Beyond the Buzz: Exploring Distributed Ledger Technology Use Cases in Capital Markets and Corporate Banking
Abstract
Distributed ledger technology (DLT) has the potential to provide a new architecture for the financial system in corporate banking and capital markets. Financial institutions are starting to combine their financial, technology, and regulatory ecosystems to prove use cases for DLT, and a select few are moving towards implementation. This report focuses on the near-term to medium-term applications of the technology and where implementation is likely to emerge first.
Sponsored by Misys, Beyond the Buzz: Exploring Distributed Ledger Technology Use Cases in Capital Markets and Corporate Banking, is broadly set out in three parts:
- The needs of financial institutions which are driving DLT architecture and the formation of consortia to accelerate the development of solutions in finance.
- Use cases emerging in capital markets and corporate banking.
- The path forward as a new future is shaped by the interplay of Fintech startups, established technology companies, incumbent financial institutions, regulators, and technology innovation from outside of the established consortia and partnerships.
“Each of the asset classes presents different challenges in terms of ‘pain points’ and how the technology can be structured to address them,” comments John Dwyer, senior analyst with Celent’s Securities & Investments practice and coauthor of the report. “Furthermore, capital markets use cases are at different stages, with some having conducted tests to prove concepts, while others have merely made announcements.”
“As a sector largely driven by transaction processing, distributed ledger technology has the potential to greatly improve corporate banking services,” says Patricia Hines, senior analyst with Celent’s Banking Group and coauthor of the report. “With the promise to improve visibility, lessen friction, automate reconciliation, and shorten cycle times, corporate banking use cases have attracted significant attention and investment.”